Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Entity Registrant Name | NORWOOD FINANCIAL CORP | ||
Entity Central Index Key | 0001013272 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 213.7 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 6,296,753 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 18,039 | $ 16,212 |
Interest bearing deposits with banks | 309 | 485 |
Cash and cash equivalents | 18,348 | 16,697 |
Securities available for sale | 243,277 | 281,121 |
Loans receivable (net of allowance for loan losses 2018: $8,452; 2017: $7,634 | 841,730 | 756,458 |
Regulatory stock, at cost | 3,926 | 3,505 |
Premises and equipment, net | 13,846 | 13,864 |
Bank owned life insurance | 37,932 | 37,060 |
Accrued interest receivable | 3,776 | 3,716 |
Foreclosed real estate owned | 1,115 | 1,661 |
Goodwill | 11,331 | 11,331 |
Other intangibles | 336 | 462 |
Other assets | 8,942 | 7,041 |
Total Assets | 1,184,559 | 1,132,916 |
LIABILITIES | ||
Deposits: Noninterest bearing demand | 201,457 | 205,138 |
Deposits: Interest-bearing demand | 88,917 | 91,479 |
Deposits: Money market deposit accounts | 137,636 | 146,362 |
Deposits: Savings | 173,593 | 166,111 |
Deposits: Time | 345,177 | 320,294 |
Total Deposits | 946,780 | 929,384 |
Short-term borrowings | 53,046 | 42,530 |
Other borrowings | 52,284 | 35,945 |
Accrued interest payable | 1,806 | 1,434 |
Other liabilities | 8,358 | 7,884 |
Total Liabilities | 1,062,274 | 1,017,177 |
STOCKHOLDERS' EQUITY | ||
Common stock, $.10 par value, authorized 10,000,000 shares, issued: 2018: 6,295,113 shares; 2017: 6,256,063 shares | 630 | 626 |
Surplus | 48,322 | 47,431 |
Retained earnings | 78,434 | 70,426 |
Treasury stock at cost: 2018: 2,470 shares, 2017: 2,608 shares | (81) | (77) |
Accumulated other comprehensive loss | (5,020) | (2,667) |
Total Stockholders' Equity | 122,285 | 115,739 |
Total Liabilities and Stockholders' Equity | $ 1,184,559 | $ 1,132,916 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Consolidated Balance Sheets [Abstract] | ||
Allowance for loan losses | $ 8,452 | $ 7,634 |
Common Stock, Par Value Per Share | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Issued | 6,295,113 | 6,256,063 |
Treasury Stock, Shares | 2,470 | 2,608 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
INTEREST INCOME | ||
Loans receivable, including fees | $ 36,404 | $ 32,524 |
Securities: Taxable | 3,573 | 3,548 |
Securities: Tax exempt | 2,446 | 2,868 |
Other | 73 | 48 |
Total Interest Income | 42,496 | 38,988 |
INTEREST EXPENSE | ||
Deposits | 4,644 | 3,377 |
Short-term borrowings | 323 | 199 |
Other borrowings | 690 | 504 |
Total Interest Expense | 5,657 | 4,080 |
Net Interest Income | 36,839 | 34,908 |
PROVISION FOR LOAN LOSSES | 1,725 | 2,200 |
Net Interest Income After Provision for Loan Losses | 35,114 | 32,708 |
OTHER INCOME | ||
Other Income | 5,663 | |
Net realized gains on sales of securities | 213 | 348 |
Net gain on sale of loans | 15 | 67 |
Earnings and proceeds on life insurance policies | 1,126 | 1,133 |
Other | 827 | 774 |
Total Other Income | 7,065 | 6,911 |
OTHER EXPENSES | ||
Salaries and employee benefits | 14,020 | 12,850 |
Occupancy | 2,889 | 2,662 |
Furniture and equipment | 806 | 699 |
Data processing and related operations | 1,427 | 1,353 |
Federal Deposit Insurance Corporation insurance assessment | 347 | 377 |
Advertising | 257 | 268 |
Professional fees | 993 | 949 |
Postage and telephone | 705 | 664 |
Taxes, other than income | 572 | 661 |
Foreclosed real estate | 172 | 1,164 |
Amortization of intangible assets | 126 | 150 |
Other | 3,661 | 3,073 |
Total Other Expenses | 25,975 | 24,870 |
Income before Income Taxes | 16,204 | 14,749 |
INCOME TAX EXPENSE | 2,553 | 6,551 |
Net income | $ 13,651 | $ 8,198 |
EARNINGS PER SHARE | ||
BASIC | $ 2.19 | $ 1.32 |
DILUTED | $ 2.17 | $ 1.31 |
Service Charges And Fees [Member] | ||
OTHER INCOME | ||
Other Income | $ 4,295 | $ 4,079 |
Income From Fiduciary Activities [Member] | ||
OTHER INCOME | ||
Other Income | $ 589 | $ 510 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
NET INCOME | $ 13,651 | $ 8,198 |
Other comprehensive (loss) income: | ||
Unrealized gain (loss) on pension liability | 207 | (17) |
Unrealized gain (loss) on pension liability: Tax effect | (43) | 6 |
Investment securities available for sale: | ||
Unrealized holding (losses) gain | (2,973) | 3,224 |
Unrealized holding (losses) gains : Tax effect | 624 | (1,097) |
Reclassification of gains on from sale of securities | (213) | (348) |
Reclassification of gains from sales of securities: Tax effect | 45 | 118 |
Other comprehensive (loss) income | (2,353) | 1,886 |
COMPREHENSIVE INCOME | $ 11,298 | $ 10,084 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Beginning balance at Dec. 31, 2016 | $ 416 | $ 47,682 | $ 67,225 | $ (125) | $ (4,119) | $ 111,079 |
Beginning balance, shares at Dec. 31, 2016 | 4,164,723 | 4,509 | ||||
Net income | 8,198 | 8,198 | ||||
Other comprehensive income (loss) | 1,886 | 1,886 | ||||
Reclassification of certain income tax effects from other comprehensive loss | 434 | (434) | ||||
Cash dividends declared | (5,412) | (5,412) | ||||
Acquisition of treasury stock | $ (1,587) | (1,587) | ||||
Acquisition of treasury stock, shares | 42,257 | |||||
Stock options exercised | (291) | $ 1,522 | $ 1,231 | |||
Stock options exercised, shares | 44,219 | 44,219 | ||||
Sale of treasury stock for ESOP | 14 | $ 113 | $ 127 | |||
Sale of treasury stock for ESOP, shares | (3,847) | |||||
Compensation expense related to stock options | 93 | 93 | ||||
Restricted stock awards | $ 1 | 142 | 143 | |||
Restricted stock awards, shares | 9,400 | |||||
50% stock dividend | $ 209 | (209) | ||||
50% stock dividend, shares | 2,082,362 | 3,908 | ||||
Cash-in-lieu stock dividend adjustment | (19) | (19) | ||||
Cash-in-lieu stock dividend adjustment, shares | (422) | |||||
Ending balance, shares at Dec. 31, 2017 | 6,256,063 | 2,608 | ||||
Ending balance at Dec. 31, 2017 | $ 626 | 47,431 | 70,426 | $ (77) | (2,667) | 115,739 |
Net income | 13,651 | 13,651 | ||||
Other comprehensive income (loss) | (2,353) | (2,353) | ||||
Cash dividends declared | (5,643) | (5,643) | ||||
Acquisition of treasury stock | $ (194) | (194) | ||||
Acquisition of treasury stock, shares | 5,921 | |||||
Stock options exercised | $ 3 | 449 | $ 68 | $ 520 | ||
Stock options exercised, shares | 25,950 | 2,325 | 28,275 | |||
Sale of treasury stock for ESOP | 1 | $ 122 | $ 123 | |||
Sale of treasury stock for ESOP, shares | (3,734) | |||||
Compensation expense related to stock options | 237 | 237 | ||||
Restricted stock awards | $ 1 | 204 | 205 | |||
Restricted stock awards, shares | 13,100 | |||||
Ending balance, shares at Dec. 31, 2018 | 6,295,113 | 2,470 | ||||
Ending balance at Dec. 31, 2018 | $ 630 | $ 48,322 | $ 78,434 | $ (81) | $ (5,020) | $ 122,285 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Stockholders' Equity [Abstract] | ||
Cash dividends declared | $ 0.90 | $ 0.87 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 13,651,000 | $ 8,198,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 1,725,000 | 2,200,000 |
Depreciation | 895,000 | 922,000 |
Amortization of intangible assets | 126,000 | 150,000 |
Deferred income taxes | 24,000 | (331,000) |
Revaluation of deferred tax assets, net | 3,060,000 | |
Net amortization of securities premiums and discounts | 1,711,000 | 2,115,000 |
Net realized gain on sales of securities | (213,000) | (348,000) |
Gain on sale of deposits | (209,000) | |
Earnings and proceeds on life insurance policies | (1,126,000) | (1,133,000) |
Loss on sales of fixed assets and foreclosed real estate owned | 26,000 | 774,000 |
Net gain on sale of loans | (15,000) | (67,000) |
Mortgage loans originated for sale | (752,000) | 0 |
Proceeds from sale of loans originated for sale | 767,000 | |
Compensation expense related to stock options | 237,000 | 93,000 |
Compensation expense related to restricted stock | 205,000 | 142,000 |
Increase in accrued interest receivable | (60,000) | (73,000) |
Increase in accrued interest payable | 372,000 | 365,000 |
Other, net | (275,000) | 193,000 |
Net Cash Provided by Operating Activities | 17,298,000 | 16,051,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sales | 17,745,000 | 15,612,000 |
Proceeds from maturities and principal reductions on mortgage-backed securities | 30,873,000 | 26,893,000 |
Purchases | (15,458,000) | (19,955,000) |
Purchase of regulatory stock | (6,155,000) | (5,842,000) |
Redemption of regulatory stock | 5,734,000 | 4,456,000 |
Net increase in loans | (87,480,000) | (51,980,000) |
Purchase of premises and equipment | (873,000) | (1,633,000) |
Proceeds from sales of foreclosed real estate owned | 776,000 | 3,341,000 |
Proceeds from sales of bank premises and fixed assets | 515,000 | |
Net Cash Used for Investing Activities | (54,838,000) | (28,593,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposits | 17,396,000 | 17,867,000 |
Deposits sold | (13,659,000) | |
Net increase in short-term borrowings | 10,516,000 | 9,719,000 |
Repayments of other borrowings | (13,661,000) | (24,056,000) |
Proceeds from other borrowings | 30,000,000 | 28,000,000 |
Stock options exercised | 520,000 | 1,040,000 |
Sale of treasury stock for ESOP | 123,000 | 127,000 |
Acquisition of treasury stock | (194,000) | (1,587,000) |
Cash dividends paid | (5,509,000) | (5,386,000) |
Net Cash Provided by Financing Activities | 39,191,000 | 12,065,000 |
Net Increase (Decrease) in Cash and Cash Equivalents | 1,651,000 | (477,000) |
CASH AND CASH EQUIVALENTS, BEGINNING | 16,697,000 | 17,174,000 |
CASH AND CASH EQUIVALENTS, END | 18,348,000 | 16,697,000 |
Supplemental Disclosures of Cash Flow Information | ||
Interest paid | 5,285,000 | 3,715,000 |
Income taxes paid, net of refunds | 2,239,000 | 3,040,000 |
Supplemental Schedule of Noncash Investing Activities | ||
Transfers of loans to foreclosed real estate owned and repossession of other assets | 553,000 | 750,000 |
Dividends payable | $ 1,510,000 | $ 1,375,000 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2018 | |
Nature of Operations [Abstract] | |
Nature of Operations | NOTE 1 - NATURE OF OPERATIONS Norwood Financial Corp (Company) is a one bank holding company. Wayne Bank (Bank) is a wholly-owned subsidiary of the Company. The Bank is a state-chartered bank headquartered in Honesdale, Pennsylvania. The Company derives substantially all of its income from bank-related services which include interest earnings on commercial mortgages, residential real estate mortgages, commercial and consumer loans, as well as interest earnings on investment securities and fees from deposit services to its customers. The Company is subject to regulation and supervision by the Federal Reserve Board while the Bank is subject to regulation and supervision by the Federal Deposit Insurance Corporation and the Pennsylvania Department of Banking and Securities. Revenue Recognition Effective January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers – Topic 606 and all subsequent ASCs that modified ASC 606. The Company has elected to apply the standard utilizing the modified retrospective approach with a cumulative effect of adoption for the impact from uncompleted contracts as the date of adoption. The implementation of the new standard had no material impact to the measurement or recognition of revenue of prior periods. Management determined that the primary sources of revenue emanating from interest income on loans and investments along with noninterest revenue resulting from investment security gains, loan servicing, gains on the sale of loans, commitment fees, and fees from financial guarantees are not within the scope of ASC 606. As a result, no changes were made during the period related to these sources of revenue. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the year ended December 31, 2018: (dollars in thousands) 2018 Noninterest Income In-scope of Topic 606: Service charges on deposit accounts $ 263 ATM Fees 398 Overdraft Fees 1,505 Safe deposit box rental 96 Loan related service fees 515 Debit card 1,330 Fiduciary activities 589 Commissions on mutual funds & annuities 185 Other income 782 Noninterest Income (in-scope of Topic 606) 5,663 Out-of-scope of Topic 606: Net realized gains on sales of securities 213 Loan servicing fees 48 Gain on sales of loans 15 Earnings on and proceeds from bank-owned life insurance 1,126 Noninterest Income (out-of-scope of Topic 606) 1,402 Total Noninterest Income $ 7,065 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly-owned subsidiaries, WCB Realty Corp., Norwood Investment Corp., Norwood Settlement Services, LLC and WTRO Properties. In June 2017, the Bank adopted a plan of dissolution for Norwood Settlement Services, LLC. Effective May 29, 2018, the existence of Norwood Settlement Services, LLC, was terminated. All significant intercompany accounts and transactions have been eliminated in consolidation. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of deferred tax assets, the determination of other-than-temporary impairment on securities, the determination of goodwill impairment and the fair value of financial instruments. Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located within its markets in Northeastern Pennsylvania and the Southern Tier of New York. Note 3 discusses the types of securities that the Company invests in. Note 4 discusses the types of lending that the Company engages in. The Company does not have any significant concentrations to any one industry or customer. Concentrations of Credit Risk The Bank operates primarily in Wayne, Pike, Lackawanna and Monroe Counties, Pennsylvania and Delaware and Sullivan Counties, New York. Accordingly, the Bank has extended credit primarily to commercial entities and individuals in these areas whose ability to honor their contracts is influenced by the region’s economy. These customers are also the primary depositors of the Bank. The Bank is limited in extending credit by legal lending limits to any single borrower or group of related borrowers. Securities Securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Any decision to sell a security classified as available for sale would be based on various factors, including significant movement in interest rates, changes in maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Securities available for sale are carried at fair value. Unrealized gains and losses are reported in other comprehensive income, net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using a method which approximates the interest method over the term of the security. Bonds, notes and debentures for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the term of the security. Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each Consolidated Balance Sheet date. Declines in the fair value of available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent of the Company to not sell the securities and it is more likely than not that it will not have to sell the securities before recovery of their cost basis. Regulatory Stock The Company, as a member of the Federal Home Loan Bank (FHLB) system is required to maintain an investment in capital stock of its district FHLB according to a predetermined formula. This regulatory stock has no quoted market value and is carried at cost. Management evaluates the regulatory stock for impairment. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. Management considers the FHLB’s regulatory capital ratios, liquidity, and the fact that new shares of FHLB stock continue to change hands at the $100 par value. Management believes no impairment charge is necessary related to FHLB stock as of December 31, 2018. Loans Receivable Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees. Interest income is accrued on the unpaid principal balance. Loan origination fees are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Company is generally amortizing these amounts over the contractual life of the loan. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest received on nonaccrual loans generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Troubled Debt Restructurings A loan is considered to be a troubled debt restructuring (TDR) loan when the Company grants a concession to the borrower because of the borrower’s financial condition that it would not otherwise consider. Such concessions include the reduction of interest rates, forgiveness of principal or interest, or other modifications of interest rates that are less than the current market rate for new obligations with similar risk. Loans Acquired Loans acquired including loans that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance. Loans are evaluated individually to determine if there is evidence of deterioration of credit quality since origination. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment or as a loss accrual or a valuation allowance. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining estimated life. Decreases in expected cash flows are recognized immediately as impairment. Any valuation allowances on these impaired loans reflect only losses incurred after the acquisition. For purchased loans acquired that are not deemed impaired at acquisition, credit discounts representing the principal losses expected over the life of the loan are a component of the initial fair value. Loans may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. Subsequent to the purchase date, the methods utilized to estimate the required allowance for credit losses for these loans is similar to originated loans; however, the Company records a provision for loan losses only when the required allowance exceeds any remaining credit discounts. The remaining differences between the purchase price and the unpaid principal balance at the date of acquisition are recorded in interest income over the life of the loans. Mortgage Servicing Rights Servicing assets are recognized as separate assets when rights are acquired through purchase or through the sale of financial assets. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon a third party appraisal. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment is recognized through a valuation allowance to the extent that fair value is less than the capitalized amount. The Company’s loan servicing assets at December 31, 2018 and 2017, respectively, were no t impaired. Total servicing assets included in other assets as of December 31, 2018 and 2017, were $178,000 and $200,000 , respectively. Allowance for Loan Losses The allowance for loan losses is established through provisions for loan losses charged against income. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management’s periodic evaluation of the adequacy of the allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are classified as substandard. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential real estate loans for impairment disclosures, unless such loans were acquired with impairment or are the subject of a restructuring agreement. Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation expense is calculated principally on the straight-line method over the respective assets estimated useful lives as follows: Years Buildings and improvements 10 - 40 Furniture and equipment 3 - 10 Transfers of Financial Assets Transfers of financial assets, including loan and loan participation sales, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Foreclosed Real Estate Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value less cost to sell at the date of foreclosure establishing a new cost basis. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of its carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in other expenses. Bank Owned Life Insurance The Company invests in bank owned life insurance (BOLI) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance by the Bank on a select group of employees. The Company is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Income from the increase in cash surrender value of the policies or from death benefits realized is included in other income on the Consolidated Statements of Income. Goodwill In connection with two acquisitions the Company recorded goodwill in the amount of $11.3 million, representing the excess of amounts paid over the fair value of net assets of the institutions acquired. Goodwill is tested and deemed impaired when the carrying value of goodwill exceeds its implied fair value. The value of the goodwill can change in the future. We expect the value of the goodwill to decrease if there is a significant decrease in the franchise value of the Bank. If an impairment loss is determined in the future, we will reflect the loss as an expense for the period in which the impairment is determined, leading to a reduction of our net income for that period by the amount of the impairment loss. No impairment was recognized for the years ended December 31, 2018 and 2017. Other Intangible Assets At December 31, 2018, the Company had other intangible assets of $336,000, which is net of accumulated amortization of $1,008,000 . These intangible assets will continue to be amortized using the sum-of-the-years digits method of amortization over ten years. At December 31, 2017, the Company had other intangible assets of $462,000 which was net of accumulated amortization of $883,000 . Amortization expense related to other intangible assets was $126,000 and $150,000 for the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018, the estimated future amortization expense for the core deposit intangible is as follows (in thousands): 2019 $ 101 2020 77 2021 52 2022 38 2023 29 Thereafter 39 $ 336 Income Taxes Deferred income tax assets and liabilities are determined based on the differences between financial statement carrying amounts and the tax basis of existing assets and liabilities. These differences are measured at the enacted tax rates that will be in effect when these differences reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. On December 22, 2017, the President signed the Tax Cut and Jobs Act (the “Act”) into law. Among other things, the Act reduced the corporate tax rate from a maximum of 35% to a flat 21% rate effective January 1, 2018. As a result of the reduction in the corporate income tax rate to 21% , the Company revalued its net deferred tax asset as of December 31, 2017, which resulted in a $3,060,000 reduction in its value. The reduction in the value of the net deferred tax asset was recorded as additional income tax expense in the fourth quarter of 2017. The Company and its subsidiary file a consolidated federal income tax return. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company analyzes each tax position taken in its tax returns and determines the likelihood that the position will be realized. Only tax positions that are “more-likely-than-not” to be realized can be recognized in an entity’s financial statements. For tax positions that do not meet this recognition threshold, an entity will record an unrecognized tax benefit for the difference between the position taken on the tax return and the amount recognized in the financial statements. The Company does not have any unrecognized tax benefits at December 31, 2018 or 2017, or during the years then ended. No unrecognized tax benefits are expected to arise within the next twelve months. Advertising Costs Advertising costs are expensed as incurred. Earnings per Share Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period less any unvested restricted shares. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method. Treasury shares are not deemed outstanding for earnings per share calculations. Employee Benefit Plans The Company has a defined contributory profit-sharing plan which includes provisions of a 401(k) plan. The Company’s contributions are expensed as the cost is incurred. The Company has several supplemental executive retirement plans. To fund the benefits under these plans, the Company is the owner of single premium life insurance policies on the participants. The Company provides pension benefits to eligible employees. The Company’s funding policy is to contribute at least the minimum required contributions annually. Stock Option Plans The Company recognizes the value of share-based payment transactions as compensation costs in the financial statements over the period that an employee provides service in exchange for the award. The fair value of the share-based payments for stock options is estimated using the Black-Scholes option-pricing model. The Company used the modified-prospective transition method to record compensation expense. Under the modified-prospective method, companies are required to record compensation cost for new and modified awards over the related vesting period of such awards and record compensation cost prospectively for the unvested portion, at the date of adoption, of previously issued and outstanding awards over the remaining vesting period of such awards. No change to prior periods presented is permitted under the modified-prospective method. Restricted Stock The Company recognizes compensation cost related to restricted stock based on the market price of the stock at the grant date over the vesting period. The product of the number of shares granted and the grant date market price of the Company’s common stock determines the fair value of restricted stock under the Company’s 2014 Equity Incentive Plan. The Company recognizes compensation expense for the fair value of the restricted stock on a straight-line basis over the requisite service period for the entire award. Cash Flow Information For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing deposits with banks and federal funds sold. Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, letters of credit and commitments to sell loans. Such financial instruments are recorded on the balance sheets when they become receivable or payable. Trust Assets Assets held by the Company in a fiduciary capacity for customers are not included in the financial statements since such items are not assets of the Company. Trust income is reported on the accrual method. Treasury Stock Common shares repurchased are recorded as treasury stock at cost. Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and defined benefit pension obligations, are reported as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income as presented in the Consolidated Statement of Comprehensive Income. Segment Reporting The Company acts as an independent community financial services provider and offers traditional banking related financial services to individual, business and government customers. Through its Community Office and automated teller machine network, the Company offers a full array of commercial and retail financial services, including the taking of time, savings and demand deposits; the making of commercial, consumer and mortgage loans; and the providing of safe deposit services. The Company also performs personal, corporate, pension and fiduciary services through its Trust Department. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail, mortgage banking and trust operations of the Company. As such, discrete information is not available and segment reporting would not be meaningful. Reclassification of Comparative Amounts Certain comparative amounts for the prior year have been reclassified to conform to current-year classifications. Such reclassifications had no material effect on net income or stockholders’ equity. New and Recently Adopted Accounting Pronouncements Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Upon adoption on January 1, 2018, we have included the related new disclosure requirements in Note 1. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This Update applies to all entities that hold financial assets or owe financial liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. Among other things, this Update (a) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. Upon adoption on January 1, 2018, we have included the related new disclosure requirements in Note 14. New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the practical expedients it may elect at adoption, but does not anticipate the amendments will have a significant impact on the financial statements. Based on the Company’s preliminary analysis of its current portfolio, the impact to the Company’s balance sheet is estimated to result in less than a one percent increase in assets and liabilities. The Company also anticipates additional disclosures will be provided at adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission (SEC) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including n |
Securities
Securities | 12 Months Ended |
Dec. 31, 2018 | |
Securities [Abstract] | |
Securities | NOTE 3 - SECURITIES The amortized cost, gross unrealized gains and losses, and fair value of securities were as follows: December 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) AVAILABLE FOR SALE: States and political subdivisions $ 99,218 $ 385 $ (1,990) $ 97,613 Corporate obligations 8,896 - (256) 8,640 Mortgage-backed securities- government sponsored entities 142,197 25 (5,198) 137,024 Total debt securities $ 250,311 $ 410 $ (7,444) $ 243,277 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) AVAILABLE FOR SALE: U.S. Treasury securities $ 2,001 $ - $ (3) $ 1,998 States and political subdivisions 120,000 1,535 (1,057) 120,478 Corporate obligations 10,068 16 (95) 9,989 Mortgage-backed securities- government sponsored entities 152,901 17 (4,262) 148,656 Total debt securities $ 284,970 $ 1,568 $ (5,417) $ 281,121 The following tables show the Company’s investments’ gross unrealized losses and fair value aggregated by security type and length of time that individual securities have been in a continuous unrealized loss position (in thousands): December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses States and political subdivisions $ 19,140 $ (390) $ 56,740 $ (1,600) $ 75,880 $ (1,990) Corporate obligations 2,045 (21) 6,595 (235) 8,640 (256) Mortgage-backed securities-government sponsored entities 8,444 (22) 122,950 (5,176) 131,394 (5,198) $ 29,629 $ (433) $ 186,285 $ (7,011) $ 215,914 $ (7,444) December 31, 2017 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities $ - $ - $ 1,998 $ (3) $ 1,998 $ (3) States and political subdivisions 17,310 (228) 44,948 (829) 62,258 (1,057) Corporate obligations - - 6,859 (95) 6,859 (95) Mortgage-backed securities-government sponsored entities 22,250 (320) 125,846 (3,942) 148,096 (4,262) $ 39,560 $ (548) $ 179,651 $ (4,869) $ 219,211 $ (5,417) The Company has 43 debt securities in the less than twelve month category and 188 debt securities in the twelve months or more category as of December 31, 2018. In management’s opinion, the unrealized losses on securities reflect changes in interest rates subsequent to the acquisition of specific securities. No other-than-temporary-impairment charges were recorded in 2018. Management believes that all other unrealized losses represent temporary impairment of the securities, and it is more likely than not that it will not have to sell the securities before recovery of their cost basis. The amortized cost and fair value of debt securities as of December 31, 2018 by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. Amortized Fair Cost Value (In Thousands) Due in one year or less $ 1,666 $ 1,671 Due after one year through five years 22,532 22,130 Due after five years through ten years 44,638 43,454 Due after ten years 39,278 38,998 108,114 106,253 Mortgage-backed securities - government sponsored entities 142,197 137,024 $ 250,311 $ 243,277 Gross realized gains and gross realized losses on sales of securities available for sale were $213,000 and $0 , respectively, in 2018, compared to $354,000 and $6,000 , respectively, in 2017. The proceeds from the sales of securities totaled $17,745,000 and $15,612,000 for the years ended December 31, 2018 and 2017, respectively. Securities with a carrying value of $193,918,000 and $213,065,000 at December 31, 2018 and 2017, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2018 | |
Loans Receivable and Allowance for Loan Losses [Abstract] | |
Loans Receivable and Allowance for Loan Losses | NOTE 4 - LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES Set forth below is selected data relating to the composition of the loan portfolio (in thousands): December 31, 2018 December 31, 2017 Real Estate: Residential $ 235,523 27.7 % $ 235,759 30.8 % Commercial 374,790 44.1 342,934 44.9 Construction 17,445 2.0 17,228 2.3 Commercial, financial and agricultural 110,542 13.0 97,461 12.7 Consumer loans to individuals 112,002 13.2 70,953 9.3 Total loans 850,302 100.0 % 764,335 100.0 % Deferred fees, net (120) (243) Total loans receivable 850,182 764,092 Allowance for loan losses (8,452) (7,634) Net loans receivable $ 841,730 $ 756,458 Changes in the accretable yield for purchased credit-impaired loans were as follows for the twelve months ended December 31: (In thousands) 2018 2017 Balance at beginning of period $ 108 $ 208 Additions - - Accretion (56) (73) Reclassification and other (23) (27) Balance at end of period $ 29 $ 108 The following table presents additional information regarding loans acquired and accounted for in accordance with ASC 310-30 (in thousands): December 31, 2018 December 31, 2017 Outstanding Balance $ 1,055 $ 1,444 Carrying Amount $ 886 $ 1,174 There were no material increases or decreases in the expected cash flows of these loans since the acquisition date. There has been no allowance for loan losses recorded for acquired loans with specific evidence of deterioration in credit quality. As of December 31, 2018, for loans that were acquired prior to 2018 with or without specific evidence of deterioration in credit quality, adjustments to the allowance for loan losses have been accounted for through the allowance for loan loss adequacy calculation. The Company maintains a loan review system, which allows for a periodic review of our loan portfolio and the early identification of potential impaired loans. The system takes into consideration, among other things, delinquency status, size of loans, type and market value of collateral and financial condition of the borrowers. Specific loan loss allowances are established for identified losses based on a review of such information. A loan evaluated for impairment is considered to be impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. All loans identified as impaired are evaluated independently. The Company does not aggregate such loans for evaluation purposes. Impairment is measured on a loan-by-loan basis for commercial and construction loans by the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral-dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential mortgage loans for impairment disclosures, unless such loans are part of a larger relationship that is impaired, or are classified as a troubled debt restructuring. The following tables show the amount of loans in each category that were individually and collectively evaluated for impairment at the dates indicated: Real Estate Loans Commercial Consumer Residential Commercial Construction Loans Loans Total (In thousands) December 31, 2018 Individually evaluated for impairment $ - $ 1,319 $ - $ - $ - $ 1,319 Loans acquired with deteriorated credit quality 630 256 - - - 886 Collectively evaluated for impairment 234,893 373,215 17,445 110,542 112,002 848,097 Total Loans $ 235,523 $ 374,790 $ 17,445 $ 110,542 $ 112,002 $ 850,302 Real Estate Loans Commercial Consumer Residential Commercial Construction Loans Loans Total (In thousands) December 31, 2017 Individually evaluated for impairment $ 23 $ 1,224 $ - $ - $ - $ 1,247 Loans acquired with deteriorated credit quality 833 341 - - - 1,174 Collectively evaluated for impairment 234,903 341,369 17,228 97,461 70,953 761,914 Total Loans $ 235,759 $ 342,934 $ 17,228 $ 97,461 $ 70,953 $ 764,335 The following table includes the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable. Unpaid Recorded Principal Associated Investment Balance Allowance December 31, 2018 (In thousands) With no related allowance recorded: Real Estate Loans Commercial $ 1,319 $ 1,747 $ - Subtotal 1,319 1,747 - Total: Real Estate Loans Commercial 1,319 1,747 - Total Impaired Loans $ 1,319 $ 1,747 $ - Unpaid Recorded Principal Associated Investment Balance Allowance December 31, 2017 (In thousands) With no related allowance recorded: Real Estate Loans Residential $ 23 $ 28 $ - Commercial 1,224 1,496 - Subtotal 1,247 1,524 - Total: Real Estate Loans Residential 23 28 - Commercial 1,224 1,496 - Total Impaired Loans $ 1,247 $ 1,524 $ - The following information for impaired loans is presented for the years ended December 31, 2018 and 2017: Average Recorded Average Recorded Interest Income Investment Recognized 2018 2017 2018 2017 (In thousands) Total: Real Estate Loans Residential $ - $ 23 $ - $ - Commercial 1,220 1,209 67 56 Total Loans $ 1,220 $ 1,232 $ 67 $ 56 Troubled debt restructured loans are those loans whose terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of financial difficulties experienced by the borrower, who could not obtain comparable terms from alternate financing sources. As of December 31, 2018, troubled debt restructured loans totaled $1.1 million and resulted in specific reserves of $0 . During 2018, there were no new loan relationships identified as troubled debt restructurings, while one loan identified as a troubled debt restructuring with a balance of $23,000 as of December 31, 2017 was paid in full during 2018. During 2018, there were no charge-offs on loans classified as troubled debt restructurings. As of December 31, 2017, troubled debt restructured loans totaled $1.1 million and resulted in specific reserves of $0 . During 2017, there were no new loan relationships identified as troubled debt restructurings, while one loan identified as a troubled debt restructuring with a balance of $322,000 as of December 31, 2016 was paid in full during 2017. During 2017, the Company recognized charge-offs totaling $55,000 on loans classified as troubled debt restructurings. Foreclosed assets acquired in settlement of loans are carried at fair value less estimated costs to sell and are included in foreclosed real estate owned on the Consolidated Balance Sheets. As of December 31, 2018 and 2017, foreclosed real estate owned totaled $1,115,000 and $1,661,000 , respectively. As of December 31, 2018, included within foreclosed real estate owned is $36,000 of consumer residential mortgages that were foreclosed on or received via a deed in lieu transaction prior to year-end. As of December 31, 2018, the Company has initiated formal foreclosure proceedings on three consumer residential mortgage loans with an outstanding balance of $298,000 . Management uses an eight point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first four categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. Loans greater than 90 days past due are considered Substandard unless full payment is expected. Any portion of a loan that has been charged off is placed in the Loss category. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as nonperformance, repossession, or death occurs to raise awareness of a possible credit event. The Company’s Loan Review Department is responsible for the timely and accurate risk rating of the loans on an ongoing basis. Every credit which must be approved by Loan Committee or the Board of Directors is assigned a risk rating at time of consideration. Loan Review also annually reviews relationships of $1,500,000 and over to assign or re-affirm risk ratings. Loans in the Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard, Doubtful and Loss within the internal risk rating system as of December 31, 2018 and December 31, 2017 (in thousands): Special Pass Mention Substandard Doubtful Loss Total December 31, 2018 Commercial real estate loans $ 360,838 $ 7,918 $ 6,034 $ - $ - $ 374,790 Commercial 109,966 82 494 - - 110,542 Total $ 470,804 $ 8,000 $ 6,528 $ - $ - $ 485,332 Special Pass Mention Substandard Doubtful Loss Total December 31, 2017 Commercial real estate loans $ 329,617 $ 9,680 $ 3,637 $ - $ - $ 342,934 Commercial 97,389 16 56 - - 97,461 Total $ 427,006 $ 9,696 $ 3,693 $ - $ - $ 440,395 For residential real estate loans, construction loans and consumer loans, the Company evaluates credit quality based on the performance of the individual credits. Nonperforming loans include loans that have been placed on nonaccrual status and loans remaining in accrual status on which the contractual payment of principal and interest has become 90 days past due. The following table presents the recorded investment in the loan classes based on payment activity as of December 31, 2018 and December 31, 2017 (in thousands): Performing Nonperforming Total December 31, 2018 Residential real estate loans $ 234,725 $ 798 $ 235,523 Construction 17,445 - 17,445 Consumer loans to individuals 112,002 - 112,002 Total $ 364,172 $ 798 $ 364,970 Performing Nonperforming Total December 31, 2017 Residential real estate loans $ 233,966 $ 1,793 $ 235,759 Construction 17,228 - 17,228 Consumer loans to individuals 70,953 - 70,953 Total $ 322,147 $ 1,793 $ 323,940 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of December 31, 2018 and December 31, 2017 (in thousands): Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due and still accruing Non-Accrual Total Past Due and Non-Accrual Total Loans December 31, 2018 Real Estate loans Residential $ 234,201 $ 373 $ 151 $ - $ 798 $ 1,322 $ 235,523 Commercial 372,617 1,043 788 - 342 2,173 374,790 Construction 17,445 - - - - - 17,445 Commercial loans 110,191 320 31 - - 351 110,542 Consumer loans 111,796 171 35 - - 206 112,002 Total $ 846,250 $ 1,907 $ 1,005 $ - $ 1,140 $ 4,052 $ 850,302 Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due and still accruing Non-Accrual Total Past Due and Non-Accrual Total Loans December 31, 2017 Real Estate loans Residential $ 233,291 $ 594 $ 81 $ 87 $ 1,706 $ 2,468 $ 235,759 Commercial 341,602 646 - 409 277 1,332 342,934 Construction 17,228 - - - - - 17,228 Commercial loans 97,424 10 27 - - 37 97,461 Consumer loans 70,869 60 24 - - 84 70,953 Total $ 760,414 $ 1,310 $ 132 $ 496 $ 1,983 $ 3,921 $ 764,335 The following table presents the allowance for loan losses by the classes of the loan portfolio: (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, December 31, 2017 $ 1,272 $ 5,265 $ 90 $ 463 $ 544 $ 7,634 Charge Offs (197) (283) - (246) (263) (989) Recoveries 9 33 - 8 32 82 Provision for loan losses 244 440 3 487 551 1,725 Ending balance, December 31, 2018 $ 1,328 $ 5,455 $ 93 $ 712 $ 864 $ 8,452 Ending balance individually evaluated for impairment $ - $ - $ - $ - $ - $ - Ending balance collectively evaluated for impairment $ 1,328 $ 5,455 $ 93 $ 712 $ 864 $ 8,452 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, December 31, 2016 $ 1,092 $ 4,623 $ 78 $ 307 $ 363 $ 6,463 Charge Offs (83) (902) (28) - (207) (1,220) Recoveries 6 159 - - 26 191 Provision for loan losses 257 1,385 40 156 362 2,200 Ending balance, December 31, 2017 $ 1,272 $ 5,265 $ 90 $ 463 $ 544 $ 7,634 Ending balance individually evaluated for impairment $ - $ - $ - $ - $ - $ - Ending balance collectively evaluated for impairment $ 1,272 $ 5,265 $ 90 $ 463 $ 544 $ 7,634 The recorded investment in impaired loans, not requiring an allowance for loan losses was $1,319,000 (net of charge-offs against the allowance for loan losses of $428,000 ) and $1,247,000 (net of charge-offs against the allowance for loan losses of $277,000 ) at December 31, 2018 and 2017, respectively. The recorded investment in impaired loans requiring an allowance for loan losses was $0 at December 31, 2018 and 2017, respectively. The specific reserve related to impaired loans was $0 for 2018 and 2017. For the years ended December 31, 2018 and 2017, the average recorded investment in these impaired loans was $1,220,000 , and $1,232,000 , respectively, and the interest income recognized on these impaired loans was $67,000 and $56,000 , respectively. During the period ended December 31, 2018, the allowance for loan losses increased from $7,634,000 to $8,452,000 . This $818,000 increase in the required allowance was due primarily to an $86.1 million increase in loan balances and an additional qualitative factor to allocate reserves for potential risk in large balance loans. This increase was partially offset by a reduction in the historical loss factor from 0.41% at December 31, 2017 to 0.26% on December 31, 2018. During the period ended December 31, 2017, the allowance for commercial real estate loans increased from $4,623,000 to $5,265,000 . This $642,000 increase in the required allowance was due primarily to a $22,747,000 increase in loan balances and an increase in the amount of reserve required for classified loans. This increase was partially offset by a reduction in the historical loss factor from 0.80% at December 31, 2016 to 0.74% on December 31, 2017. Interest income that would have been recorded on loans accounted for on a non-accrual basis under the original terms of the loans was $98,000 and $163,000 for 2018 and 2017, respectively. As of December 31, 2018 and 2017, the Company considered its concentration of credit risk to be acceptable. As of December 31, 2018, the highest concentrations are in commercial rentals and the hospitality lodging industry, with loans outstanding of $71.8 million, or 68.9% of bank capital, to commercial rentals, and $59.7 million, or 57.3% of bank capital to the hospitality lodging industry. Charge-offs on loans within these concentrations were $0 and $762,000 for the years ended December 31, 2018 and 2017, respectively. During 2018, the Company sold residential mortgage loans totaling $752,000 . During 2017, the Company did not sell any residential mortgage loans. Gross realized gains and gross realized losses on sales of residential mortgage loans were $15,000 and $ 0 , respectively, in 2018 and $0 and $0 , respectively, in 2017. The proceeds from the sales of residential mortgage loans totaled $767,000 and $0 for the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018 and 2017, the outstanding value of loans serviced for others totaled $26.8 million and $ 29.0 million, respectively. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | NOTE 5 - PREMISES AND EQUIPMENT Components of premises and equipment at December 31 are as follows: 2018 2017 (In Thousands) Land and improvements $ 2,832 $ 2,771 Buildings and improvements 17,788 17,613 Furniture and equipment 7,171 6,636 27,791 27,020 Accumulated depreciation (13,945) (13,156) $ 13,846 $ 13,864 Depreciation expense totaled $895,000 and $922,000 for the years ended December 31, 2018 and 2017, respectively. Certain facilities are leased under various operating leases. Rental expense for these leases was $470,000 and $405,000 , respectively, for the years ended December 31, 2018 and 2017. Future minimum rental commitments under noncancellable leases as of December 31, 2018 were as follows (in thousands): 2019 $ 454 2020 452 2021 452 2022 452 2023 452 Thereafter 4,202 $ 6,464 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Deposits | NOTE 6 - DEPOSITS Aggregate time deposits in denominations of more than $250,000 were $112,665,000 and $92,527,000 at December 31, 2018 and 2017, respectively. At December 31, 2018, the scheduled maturities of time deposits are as follows (in thousands): 2019 $ 212,786 2020 81,453 2021 17,246 2022 17,374 2023 16,318 $ 345,177 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Borrowings [Abstract] | |
Borrowings | NOTE 7 – BORROWINGS Short-term borrowings at December 31 consist of the following: 2018 2017 (In Thousands) Securities sold under agreements to repurchase $ 37,457 $ 24,286 Federal Home Loan Bank short-term borrowings 15,589 18,244 $ 53,046 $ 42,530 The outstanding balances and related information of short-term borrowings are summarized as follows: Years Ended December 31, 2018 2017 (Dollars In Thousands) Average balance during the year $ 41,963 $ 39,170 Average interest rate during the year 0.77 % 0.51 % Maximum month-end balance during the year $ 53,046 $ 54,286 Weighted average interest rate at the end of the year 1.27 % 0.87 % Securities sold under agreements to repurchase generally mature within one day to one year from the transaction date. Securities with an amortized cost and fair value of $41,587,000 and $40,161,000 at December 31, 2018 and $27,255,000 and $26,626,000 at December 31, 2017, respectively, were pledged as collateral for these agreements. The securities underlying the agreements were under the Company’s control. The collateral pledged for repurchase agreements that are classified as secured borrowings is summarized as follows (in thousands): As of December 31, 2018 Remaining Contractual Maturity of the Agreements Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total Repurchase Agreements: Mortgage-backed securities - government sponsored entities $40,161 $ - $ - $ - $40,161 Total liability recognized for repurchase agreements $37,457 As of December 31, 2017 Remaining Contractual Maturity of the Agreements Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total Repurchase Agreements: Mortgage-backed securities - government sponsored entities $26,626 $ - $ - $ - $26,626 Total liability recognized for repurchase agreements $24,286 The Company has a line of credit commitment available from the FHLB of Pittsburgh for borrowings of up to $150,000,000, which renews annually in May. At December 31, 2018, there were $ 15,589,000 of borrowings outstanding on this line. There were $18,244,000 of borrowings outstanding on this line of credit at December 31, 2017. The Company has a line of credit commitment available from Atlantic Community Bankers Bank for $7,000,000, which expires on June 30, 2019. There were no borrowings under this line of credit at December 31, 2018 and 2017. The Company has a line of credit commitment available from PNC Bank for $16,000,000 at December 31, 2018. There were no borrowings under this line of credit at December 31, 2018 and December 31, 2017. The Company also has a line of credit commitment from Zions Bank for $17,000,000 . There were no borrowings under this line of credit at December 31, 2018 and December 31, 2017. Other borrowings consisted of the following at December 31, 2018 and 2017: 2018 2017 (In Thousands) Amortizing fixed rate borrowing due January 2018 at 0.91% $ - $ 51 Amortizing fixed rate borrowing due December 2018 at 1.42% - 823 Amortizing fixed rate borrowing due January 2019 at 1.39% 423 5,451 Fixed rate term borrowing due August 2019 at 1.61% 10,000 10,000 Amortizing fixed rate borrowing due June 2020 at 1.49% 3,079 5,093 Amortizing fixed rate borrowing due July 2020 at 2.77% 7,962 - Amortizing fixed rate borrowing due December 2020 at 1.71% 5,000 3,051 Amortizing fixed rate borrowing due December 2020 at 3.06% 2,051 - Amortizing fixed rate borrowing due March 2022 at 1.75% 2,877 3,730 Amortizing fixed rate borrowing due October 2022 at 1.88% 6,200 7,746 Amortizing fixed rate borrowing due October 2023 at 3.24% 9,692 - Amortizing fixed rate borrowing due December 2023 at 3.22% 5,000 - $ 52,284 $ 35,945 Contractual maturities and scheduled cash flows of other borrowings at December 31, 2018 are as follows (in thousands): 2019 $ 26,234 2020 13,018 2021 5,581 2022 4,760 2023 2,691 $ 52,284 The Bank’s maximum borrowing capacity with the FHLB was $398,936,000 of which $67,873,000 was outstanding in the form of advances and $45,000,000 was outstanding in the form of letters of credit at December 31, 2018. Advances from the FHLB are secured by qualifying assets of the Bank. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | NOTE 8 – EMPLOYEE BENEFIT PLANS The Company has a defined contributory profit-sharing plan which includes provisions of a 401(k) plan. The plan permits employees to make pre-tax contributions up to 15% of the employee’s compensation, not to exceed the limits set by the Internal Revenue Service. The amount of contributions to the plan, including matching contributions, is at the discretion of the Board of Directors. All employees over the age of 21 are eligible to participate in the plan and receive Company contributions after one year of employment. Eligible employees are able to contribute to the Plan at the beginning of the first quarterly period after their date of employment. Employee contributions vest immediately, and any Company contributions are fully vested after five years. The Company’s contributions are expensed as the cost is incurred, funded currently, and amounted to $738,000 and $605,000 for the years ended December 31, 2018 and 2017, respectively. The Company has several non-qualified supplemental executive retirement plans for the benefit of certain executive officers and former officers. At December 31, 2018 and 2017, other liabilities include $3,362,000 and $3,360,000 accrued under the Plan. Compensation expense includes approximately $434,000 and $301,000 relating to the supplemental executive retirement plan for 2018 and 2017, respectively. To fund the benefits under this plan, the Company is the owner of single premium life insurance policies on participants in the non-qualified retirement plan. At December 31, 2018 and 2017, the cash value of these policies was $37,932,000 and $37,060,000 , respectively. The Company provides postretirement benefits in the form of split-dollar life arrangements to employees who meet the eligibility requirements. The net periodic postretirement benefit expense included in salaries and employee benefits was $149,000 and $168,000 for the years ended December 31, 2018 and 2017, respectively. FASB authoritative guidance on accounting for deferred compensation and postretirement benefit aspects of endorsement split-dollar life insurance arrangements requires the recognition of a liability and related compensation expense for endorsement split-dollar life insurance that provides a benefit to an employee that extends to postretirement periods. The life insurance policies purchased for the purpose of providing such benefits do not effectively settle an entity’s obligation to the employee. Accordingly, the entity must recognize a liability and related compensation expense during the employee’s active service period based on the future cost of insurance to be incurred during the employee’s retirement. This expense is included in the SERP plan expense for 2018 discussed above. If the entity has agreed to provide the employee with a death benefit, then the liability for the future death benefit should be recognized by following the FASB authoritative guidance on employer’s accounting for postretirement benefits other than pensions. The accumulated postretirement benefit obligation was $1,291,000 and $1,142,000 at December 31, 2018 and 2017, respectively. Through its acquisition of Delaware, the Company also has certain director fee deferral and continuation plans. These plans allowed directors to defer director fees and provide a benefit payment for a period of five to fifteen years. The Company expensed $6,000 and $9,000 under these plans in 2018 and 2017, respectively. At December 31, 2018 and 2017, the liability under these plans was $249,000 and $331,000 , respectively . Certain key executives have change in control agreements with the Company. These agreements provide certain potential benefits in the event of termination of employment following a change in control. The Company participates in the Pentegra Mulitemployer Defined Benefit Pension Plan (EIN 13-5645888 and Plan # 333) as a result of its acquisition of North Penn. As of December 31, 2018 and 2017, the Company’s Plan was 91.4% and 89.0% funded, respectively, and total contributions made are not more than 5% of the total contributions to the Plan. The Company’s expense related to the Plan was $46,000 in 2018 and 2017. During the plan years ending December 31, 2018 and 2017, the Company made a contribution of $46,000 for each year . As a result of its acquisition of Delaware, the Company is a member of the New York State Bankers Retirement System. Substantially all full-time employees who were former employees of Delaware are covered under this defined benefit pension plan (the “Delaware Plan”). The Company’s funding policy is to contribute at least the minimum required contribution annually. Pension cost is computed using the projected unit credit actuarial cost method. Effective December 31, 2012, the Delaware Plan was closed to new participants and accrued benefits were frozen. The following table sets forth the projected benefit obligation and change in plan assets for the Delaware Plan at December 31: (in Thousands of Dollars) 2018 2017 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ (8,465) $ (8,084) Service cost (64) (68) Interest cost (279) (303) Actuarial gain (loss) 1,040 (587) Benefits paid 582 577 Benefit obligation at end of year $ (7,186) $ (8,465) Change in plan assets: Fair value of plan assets at beginning of year $ 7,110 $ 6,702 Actual return on plan assets (401) 981 Benefits paid (573) (573) Fair value of assets at end of year 6,136 7,110 Funded status at end of year $ (1,050) $ (1,355) The Delaware Plan paid $582,000 and $577,000 in benefit payments in 2018 and 2017, respectively. Estimated benefit payments under the Delaware Plan are expected to be approximately $510,000 , $498,000 , $486,000 , $487,000 and $472,000 for the next five years. Payments are expected to be approximately $2,233,000 in total for the five-year period ending December 31, 2028. The Company was not required to make any contributions to the Delaware Plan in 2018 or 2017. The increase in the projected discount rate contributed approximately $900,000 to the overall increase in the projected benefit obligation for the year ended December 31, 2018. The accumulated benefit obligation for the Delaware Plan was $7,186,000 and $8,465,000 at December 31, 2018 and 2017, respectively. The following table sets forth the amounts recognized in accumulated other comprehensive income for the years ended December 31 (in thousands): 2018 2017 Transition asset $ - $ - Prior service credit - - Gain 207 473 Total $ 207 $ 473 Net pension cost (income) included the following components (in thousands): 2018 2017 Service cost benefits earned during the period $ 64 $ 68 Interest cost on projected benefit obligation 279 303 Actual return on assets (441) (416) Net amortization and deferral - - NET PERIODIC PENSION COST $ (98) $ (45) The weighted average assumptions used to determine the benefit obligation at December 31 are as follows: 2018 2017 Discount rate 4.54 % 3.43 % The weighted average assumptions used to determine the net periodic pension cost at December 31 are as follows: 2018 2017 Discount rate 3.43 % 3.90 % Expected long-term return on plan assets 6.50 % 6.50 % Rate of compensation increase 0.00 % 0.00 % The expected long-term return on plan assets was determined based upon expected returns on individual asset types included in the asset portfolio. The Delaware Plan’s weighted-average asset allocations at December 31, by asset category, are as follows: 2018 2017 Cash equivalents 4.2 % 6.4 % Equity securities 46.1 % 50.2 % Fixed income securities 45.8 % 40.2 % Other 3.9 % 3.2 % 100.0 % 100.0 % The Delaware Plan’s overall investment strategy is to achieve a mix of approximately 97 percent of investments for long-term growth and 3 percent for near-term benefit payments with a wide diversification of asset types, fund strategies, and fund managers. The target allocation for the Delaware Plan assets is 0 to 20 percent cash equivalents, 40 to 60 percent equity securities, 40 to 60 percent fixed income securities, and 0 to 5 percent other. Cash equivalents consist primarily of government issues and short-term investment funds. Equity securities primarily include investments in common stock, depository receipts, preferred stock, and real estate investment trusts. Fixed income securities include corporate bonds, government issues, mortgage-backed securities, municipals, and other asset backed securities. The fair value of the Delaware Plan’s assets, by asset category, is as follows: December 31, 2018 Quoted Market Other Price in Observable Unobservable Active Markets Inputs Inputs Total (Level 1) (Level 2) (Level 3) (in thousands of dollars) Cash equivalents: Cash (including foreign currencies) $ 6 $ 6 $ - $ - Equity securities: Common stock 2,475 2,475 - - Depository receipts 42 42 - - Preferred stock 20 20 - - Fixed income securities: Corporate bonds 608 - 608 - Government issue 2,228 - 2,228 - Collateralized mortgage obligations 156 - 156 - Other 601 - - 601 Total $ 6,136 $ 2,543 $ 2,992 $ 601 December 31, 2017 Quoted Market Other Price in Observable Unobservable Active Markets Inputs Inputs Total (Level 1) (Level 2) (Level 3) (in thousands of dollars) Cash equivalents: Cash (including foreign currencies) $ 70 $ 70 $ - $ - Short-term investment funds 19 - 19 - Equity securities: Common stock 1,401 1,401 - - Depository receipts 35 35 - - Commingled Pension Trust Fund 2,203 - 2,203 - Preferred stock 31 31 - - Fixed income securities: Corporate bonds 296 - 296 - Government issue 992 - 992 - Mortgage-backed securities 6 - 6 - Collateralized mortgage obligations 56 - 56 - Commingled Pension Trust Fund 1,746 - 1,746 - Other 255 - - 255 Total $ 7,110 $ 1,537 $ 5,318 $ 255 The following table sets forth a summary of the changes in the Level 3 assets for the year ended December 31, 2018 and 2017 (in thousands of dollars): 2018 2017 Balance, January 1 $ 255 $ 283 Purchase - - Unrealized gain (loss) 346 (28) Balance, December 31 $ 601 $ 255 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 9 - INCOME TAXES The components of the provision for federal income taxes are as follows: Years Ended December 31, 2018 2017 (In Thousands) Current $ 2,529 $ 3,822 Change in corporate tax rate - 3,060 Deferred 24 (331) $ 2,553 $ 6,551 Deferred income taxes reflect temporary differences in the recognition of revenue and expenses for tax reporting and financial statement purposes, principally because certain items, such as, the allowance for loan losses and loan fees are recognized in different periods for financial reporting and tax return purposes. As of December 31, 2018, the Company has a $4,970,000 net operating loss carryforward that will begin to expire in 2035 . A valuation allowance has not been established for deferred tax assets. Realization of the deferred tax assets is dependent on generating sufficient taxable income. Although realization is not assured, management believes it is more likely than not that all of the deferred tax asset will be realized. Deferred tax assets are recorded in other assets. Income tax expense of the Company is less than the amounts computed by applying statutory federal income tax rates to income before income taxes because of the following: Percentage of Income before Income Taxes Years Ended December 31, 2018 2017 Tax at statutory rates 21.0 % 35.0 % Tax exempt interest income, net of interest expense disallowance (4.9) (9.6) Incentive stock options 0.2 0.2 Earnings and proceeds on life insurance (1.1) (2.7) Change in corporate tax rate - 20.8 Other 0.6 0.7 15.8 % 44.4 % The net deferred tax asset included in other assets in the accompanying Consolidated Balance Sheets includes the following amounts of deferred tax assets and liabilities: 2018 2017 (In Thousands) Deferred tax assets: Allowance for loan losses $ 1,775 $ 1,603 Deferred compensation 766 775 Core deposit intangible 278 232 Prepaid expenses 90 125 Pension liability 263 384 Foreclosed real estate valuation allowance 20 7 AMT tax credit carryforward 260 260 Net operating loss carryforward 1,173 1,249 Net unrealized loss on securities 1,477 808 Other 95 92 Total Deferred Tax Assets 6,197 5,535 Deferred tax liabilities: Premises and equipment 223 210 Deferred loan fees 186 142 Net unrealized gain on pension liability 43 99 Purchase price adjustment 321 303 Total Deferred Tax Liabilities 773 754 Net Deferred Tax Asset $ 5,424 $ 4,781 The Company’s federal and state income tax returns for taxable years through 201 5 have been closed for purposes of examination by the Internal Revenue Service and the Pennsylvania Department of Revenue. |
Regulatory Matters and Stockhol
Regulatory Matters and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Matters and Stockholders' Equity [Abstract] | |
Regulatory Matters and Stockholders' Equity | NOTE 10 - REGULATORY MATTERS AND STOCKHOLDERS’ EQUITY The Company and Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk-weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of Total, Tier 1 and Common Equity Tier 1 capital (as defined in the regulations) to risk-weighted assets, and of Tier 1 capital to average assets. Management believes, as of December 31, 2018 and 2017, that the Company and the Bank meet all capital adequacy requirements to which they are subject. As of December 31, 2018, the most recent notification from the regulators has categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Company’s actual capital amounts and ratios are presented in the following table: To be Well Capitalized under Prompt For Capital Adequacy Corrective Action Actual Purposes Provision Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) As of December 31, 2018: Total capital (to risk-weighted assets) $ 122,917 14.00 % ≥$70,248 ≥8.00 % ≥$87,810 ≥10.00 % Tier 1 capital (to risk-weighted assets) 114,465 13.04 ≥52,686 ≥6.00 ≥70,248 ≥8.00 Common Equity Tier 1 capital (to risk-weighted assets) 114,465 13.04 ≥39,515 ≥4.50 ≥57,077 ≥6.50 Tier 1 capital (to average assets) 114,465 9.82 ≥46,619 ≥4.00 ≥58,273 ≥5.00 As of December 31, 2017: Total capital (to risk-weighted assets) $ 113,091 14.11 % ≥$64,126 ≥8.00 % ≥$80,158 ≥10.00 % Tier 1 capital (to risk-weighted assets) 105,457 13.16 ≥48,095 ≥6.00 ≥64,126 ≥8.00 Common Equity Tier 1 capital (to risk-weighted assets) 105,457 13.16 ≥36,071 ≥4.50 ≥52,103 ≥6.50 Tier 1 capital (to average assets) 105,457 9.36 ≥45,075 ≥4.00 ≥56,343 ≥5.00 The Bank’s ratios do not differ significantly from the Company’s ratios presented above. Effective January 1, 2015, the Company and the Bank became subject to new regulatory capital rules which, among other things, impose a new common equity Tier 1 minimum capital requirement (4.5% of risk-weighted assets); set the minimum leverage ratio for all banking organizations at a uniform 4% of total assets; increased the minimum Tier 1 capital to risk-based assets requirement (from 4% to 6% of risk-weighted assets); and assigned a higher risk-weight ( 150% ) to exposures that are more than 90 days past due or are on nonaccrual status and to certain commercial real estate facilities that finance the acquisition, development or construction of real property. The new rules also require unrealized gains and losses on certain “available-for-sale” securities holdings to be included for purposes of calculating regulatory capital requirements unless a one-time opt out is exercised, which the Company and the Bank have done. The final rule limits a banking organization’s dividends, stock repurchases and other capital distributions, and certain discretionary bonus payments to executive officers, if the banking organization does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets above regulatory minimum risk-based requirements. The capital conservation buffer requirements will be phased in beginning January 1, 2016 and ending January 1, 2019, when the full capital conservation buffer will be effective. The Company and the Bank are in compliance with their respective new capital requirements, including the capital conservation buffer, as of December 31, 2018. The Bank is required to maintain average cash reserve balances in vault cash or with the Federal Reserve Bank. The amount of these restricted cash reserve balances at December 31, 2018 and 2017 was approximately $1,018,000 and $1,111,000 , respectively. Under Pennsylvania banking law, the Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. At December 31, 2018, $64,886,000 of retained earnings were available for dividends without prior regulatory approval, subject to the regulatory capital requirements discussed above. Under Federal Reserve regulations, the Bank is limited as to the amount it may lend affiliates, including the Company, unless such loans are collateralized by specific obligations. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Stock Based Compensation [Abstract] | |
Stock Based Compensation | NOTE 11 - STOCK BASED COMPENSATION The Company’s shareholders approved the Norwood Financial Corp 2006 Stock Option Plan at the Annual Meeting on April 26, 2006. An aggregate of 412,500 shares of authorized but unissued Common Stock of the Company were reserved for future issuance under the Plan. This includes up to 66,000 shares for awards to outside directors. Under this plan, the Company granted 11,135 options to employees in 2015, 18,750 options to employees in 2014, and 42,900 options, which included 6,000 options granted to outside directors in 2013. No options were granted under this plan in 2018 or 2017. As of December 31, 2018, there were no shares available for future awards under this plan. All share information has been restated to reflect the 50% stock dividend declared in 2017. At the Annual Meeting held on April 22, 2014, the Company’s shareholders approved the Norwood Financial Corp 2014 Equity Incentive Plan. An aggregate of 375,000 shares of authorized but unissued Common Stock of the Company were reserved for future issuance under the Plan. This includes up to 60,000 shares for awards to outside directors. The Plan also authorized the Company to award restricted stock to officers and outside directors, limited to 63,000 shares of restricted stock awards for officers and 12,000 shares of restricted stock awards for outside directors. At the Annual Meeting held on April 24, 2018, the Company’s shareholders approved an amendment to the 2014 Equity Incentive Plan to ease certain restrictions on restricted stock awards to outside directors. As a result of this amendment, the number of shares available for restricted stock awards to officers was reduced by 300 shares to 62,700 , while the number of shares available for restricted stock awards to outside directors was increased by 20,300 to 32,300 shares. Under this plan, the Company granted 42,000 shares in 2018 which included 26,500 options to employees, 7,500 shares of restricted stock to officers, 2,400 options to directors and 5,600 shares of restricted stock to directors. In 2017, the Company granted 44,150 shares which included 26,750 options to employees, 9,000 shares of restricted stock to officers, 8,000 options to directors and 400 shares of restricted stock to directors. In 2016, the Company granted 36,675 shares which included 24,000 options to employees, 9,000 shares of restricted stock to officers and 3,675 shares of restricted stock to directors. In 2015, the Company granted 2 0,591 shares which included 10,616 options to employees, 6,375 shares of restricted stock to officers and 3,600 shares of restricted stock to directors. In 2014, the Company granted 13,950 shares, which included 9,750 shares of restricted stock to officers and 4,200 shares of restricted stock to outside directors. All shares granted in 2014 were for restricted stock. The restricted shares vest over a five -year period. The product of the number of shares granted and the grant date market price of the Company’s common stock determine the fair value of restricted stock under the company’s restricted stock plan. Management recognizes compensation expense for the fair value of restricted stock on a straight-line basis over the requisite service period for the entire award. As of December 31, 2018, there were 217,635 shares available for future awards under this plan, which includes 185,510 shares available for officer awards and 32,125 shares available for awards to outside directors. Included in these totals are 21,075 shares available for restricted stock awards to officers and 14,825 shares available for restricted stock awards to outside directors. All share information has been restated to reflect the 50% stock dividend declared in 2017. Total unrecognized compensation cost related to stock options was $207,000 as of December 31, 2018 and $237,000 as of December 31, 2017. Salaries and employee benefits expense includes $237,000 and $93,000 of compensation costs related to options for the years ended December 31, 2018 and 2017, respectively. Compensation costs related to restricted stock amounted to $205,000 and $143,000 for the years ended December 31, 2018 and 2017, respectively. The expected future compensation expense relating to non-vested restricted stock outstanding as of December 31, 2018 and 2017 was $963,000 and $744,000, respectively. Net income was reduced by $388,000 and $187,000 for the years ended December 31, 2018 and 2017, respectively. A summary of the Company’s stock option activity and related information for the years ended December 31 follows: 2018 2017 Weighted Weighted Average Average Average Average Exercise Intrinsic Exercise Intrinsic Options Price Value Options Price Value Outstanding, beginning of year 212,725 $ 20.76 225,669 $ 19.46 Granted 28,900 32.34 34,750 32.81 Exercised (28,275) 18.39 (44,219) 23.53 Forfeited (4,650) 27.08 (3,475) 21.71 Outstanding, end of year 208,700 $ 22.54 $ 2,182,537 212,725 $ 20.76 $ 2,604,097 Exercisable, end of year 179,800 $ 20.97 $ 2,163,463 177,975 $ 18.41 $ 2,597,494 Exercise prices for options outstanding as of December 31, 2018 ranged from $16.65 to $32.81 per share. The weighted average remaining contractual life is 5.9 years. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: Years Ended December 31, 2018 2017 Dividend yield 3.72% 3.89% Expected life 10 years 10 years Expected volatility 29.10% 29.11% Risk-free interest rate 2.68% 2.41% Weighted average fair value of options granted $ 7.18 $ 6.83 The expected volatility is based on historical volatility. The risk-free interest rates for periods within the contractual life of the awards are based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life is based on historical exercise experience. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts. Proceeds from stock option exercises totaled $ 520,000 in 2018. Shares issued in connection with stock option exercises are issued from available treasury shares or from available authorized shares. During 2018, for the shares issued in connection with stock option exercises, 28,275 shares in total, 25,950 shares were issued from available authorized shares, while the remaining 2,325 shares were issued from available treasury shares. All share information has been adjusted to reflect the 50% stock dividend declared in 2017. As of December 31, 2018, outstanding stock options consist of the following: Average Average Options Exercise Remaining Options Exercise Outstanding Price Life, Years Exercisable Price 14,775 $ 17.33 1.0 14,775 $ 17.33 14,025 16.83 2.0 14,025 16.83 18,825 16.65 3.0 18,825 16.65 26,400 18.03 4.0 26,400 18.03 1,650 18.36 4.0 1,650 18.36 3,000 19.30 4.8 3,000 19.30 25,375 17.93 5.0 25,375 17.93 12,000 19.39 5.9 12,000 19.39 13,500 19.03 6.9 13,500 19.03 18,500 22.37 8.0 18,500 22.37 31,750 32.81 9.0 31,750 32.81 28,900 32.34 10.0 - - Total 208,700 179,800 A summary of the Company’s restricted stock activity and related information for the years ended December 31 is as follows: 2018 2017 Weighted-Average Weighted-Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Non-vested, beginning of year 30,415 $24.46 28,035 $20.64 Granted 13,100 32.34 9,400 32.81 Vested (8,900) 23.00 (7,020) 20.37 Forfeited - - - - Non-vested at December 31 34,615 $27.82 30,415 $24.46 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
EARNINGS PER SHARE | |
Earnings Per Share | NOTE 12 - EARNINGS PER SHARE The following table sets forth the computations of basic and diluted earnings per share: Years Ended December 31, 2018 2017 (In Thousands, Except Per Share Data) Numerator, net income $ 13,651 $ 8,198 Denominator: Weighted average shares outstanding 6,263 6,238 Less: Weighted average unvested restricted shares (31) (28) Denominator: Basic earnings per share 6,232 6,210 Weighted average shares outstanding, basic 6,232 6,210 Add: Dilutive effect of stock options 58 61 Denominator: Diluted earnings per share 6,290 6,271 Basic earnings per common share $ 2.19 $ 1.32 Diluted earnings per common share $ 2.17 $ 1.31 Stock options which had no intrinsic value because their effect would be anti-dilutive, and therefore would not be included in the diluted EPS calculation, were zero for both years ended December 31, 2018 and 2017, based on the closing price of the Company’s common stock which was $ 33.00 as of December 31, 2018 and 2017. All share and per share information has been res tated to reflect the 50% stock dividend declared in 2017. |
Off-Balance Sheet Financial Ins
Off-Balance Sheet Financial Instrument | 12 Months Ended |
Dec. 31, 2018 | |
Off-Balance Sheet Financial Instruments [Abstract] | |
Off-Balance Sheet Financial Instruments | NOTE 13 - OFF-BALANCE SHEET FINANCIAL INSTRUMENTS The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. A summary of the Bank’s financial instrument commitments is as follows: December 31, 2018 2017 (In Thousands) Commitments to grant loans $ 45,246 $ 44,970 Unfunded commitments under lines of credit 71,906 62,228 Standby letters of credit 4,269 5,919 $ 121,421 $ 113,117 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the customer and generally consists of real estate. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The majority of these standby letters of credit expire within the next twelve months. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending other loan commitments. The Bank requires collateral supporting these letters of credit when deemed necessary. Management believes that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | NOTE 14 – FAIR VALUES OF FINANCIAL INSTRUMENTS Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In accordance with fair value accounting guidance, the Company measures, records, and reports various types of assets and liabilities at fair value on either a recurring or non-recurring basis in the Consolidated Financial Statements. Those assets and liabilities are presented in the sections entitled “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis” and “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis”. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The methods of determining the fair value of assets and liabilities presented in this note are consistent with our methodologies disclosed in Note 14 of the Company’s 2017 Form 10-K, except for the valuation of loans which was impacted by the adoption of ASU 2016-01. In accordance with ASU 2016-01, the fair value of loans, excluding previously presented impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit and nonperformance risk. Loans are considered a Level 3 classification. Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2018 and 2017 are as follows (in thousands): Fair Value Measurement Reporting Date using Description Total Level 1 Level 2 Level 3 December 31, 2018 Available for Sale: States and political subdivisions $ 97,613 $ - $ 97,613 $ - Corporate obligations 8,640 - 8,640 - Mortgage-backed securities-government sponsored entities 137,024 - 137,024 - Total available for sale $ 243,277 $ - $ 243,277 $ - December 31, 2017 Available for Sale: U.S. Treasury securities $ 1,998 $ - $ 1,998 $ - States and political subdivisions 120,478 - 120,478 - Corporate obligations 9,989 - 9,989 - Mortgage-backed securities-government sponsored entities 148,656 - 148,656 - Total available for sale $ 281,121 $ - $ 281,121 $ - Securities: The fair value of securities available for sale (carried at fair value) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted prices. For certain securities which are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence (Level 3). In the absence of such evidence, management’s best estimate is used. Management’s best estimate consists of both internal and external support on certain Level 3 investments. Internal cash flow models using a present value formula that includes assumptions market participants would use along with indicative exit pricing obtained from broker/dealers (where available) are used to support fair values of certain Level 3 investments, if applicable. Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2018 and 2017 are as follows (in thousands): Fair Value Measurement Reporting Date using Description Total Level 1 Level 2 Level 3 December 31, 2018 Impaired Loans $ 1,319 $ - $ - $ 1,319 Foreclosed real estate 1,115 - - 1,115 December 31, 2017 Impaired Loans $ 1,247 $ - $ - $ 1,247 Foreclosed real estate 1,661 - - 1,661 Impaired loans (generally carried at fair value): The Company measures impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the lowest level of input that is significant to the fair value measurements. As of December 31, 2018, the fair value investment in impaired loans totaled $1,319,000 which included six loan relationships that did not require a valuation allowance since either the estimated realizable value of the collateral or the discounted cash flows exceeded the recorded investment in the loan. As of December 31, 2018, the Company has recognized charge-offs against the allowance for loan losses on these impaired loans in the amount of $428,000 over the life of the loans. As of December 31, 2017, the fair value investment in impaired loans totaled $1,247,000 which included five loans which did not require a valuation allowance since the estimated realizable value of the collateral exceeded the recorded investment in the loan. As of December 31, 2017, the Company had recognized charge-offs against the allowance for loan losses on these impaired loans in the amount of $277,000 over the life of the loans. Foreclosed real estate owned (carried at fair value): Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are carried at fair value less estimated cost to sell. Fair value is based upon independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. These assets are included in Level 3 fair value based upon the lowest level of input that is significant to the fair value measurement. The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements (dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2018 Impaired loans $ 232 Appraisal of collateral(1) Appraisal adjustments(2) 10.00 - 81.54% ( 56.06% ) Impaired loans $ 1,087 Present value of future cash flows Loan discount rate 4.00 - 6.00% ( 5.80% ) Probability of default 0% Foreclosed real estate owned $ 1,115 Appraisal of collateral(1) Liquidation Expenses(2) 7.00 - 85.71% ( 7.80% ) Quantitative Information about Level 3 Fair Value Measurements (dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2017 Impaired loans $ 131 Appraisal of collateral(1) Appraisal adjustments(2) 10% ( 10% ) Impaired loans $ 1,116 Present value of future cash flows Loan discount rate 4 -5.25% ( 5.11% ) Probability of default 0% Foreclosed real estate owned $ 1,661 Appraisal of collateral(1) Liquidation Expenses(2) 0 - 42.60% ( 14.68% ) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable, less any associated allowance. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. Assets and Liabilities Not Required to be Measured or Reported at Fair Value The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at December 31, 2018 and 2017. Cash and cash equivalents (carried at cost): The carrying amounts reported in the consolidated balance sheet for cash and short-term instruments approximate those assets’ fair values. Loans receivable (carried at cost): The fair values of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Mortgage servicing rights (generally carried at cost) The Company utilizes a third party provider to estimate the fair value of certain loan servicing rights. Fair value for the purpose of this measurement is defined as the amount at which the asset could be exchanged in a current transaction between willing parties, other than in a forced liquidation. Restricted investment in Federal Home Loan Bank stock (carried at cost): The Bank, as a member of the Federal Home Loan Bank (FHLB) system, is required to maintain an investment in capital stock of its district FHLB according to a predetermined formula. This regulatory stock has no quoted market value and is carried at cost. Bank owned life insurance (carried at cost): The fair value is equal to the cash surrender value of the Bank owned life insurance. Accrued interest receivable and payable (carried at cost): The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value. Deposit liabilities (carried at cost): The fair values disclosed for demand deposits (e.g., interest and noninterest checking, savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. Short-term borrowings (carried at cost): The carrying amounts of short-term borrowings approximate their fair values. Other borrowings (carried at cost): Fair values of FHLB advances are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a fair value that is deemed to represent the transfer price if the liability were assumed by a third party. Off-balance sheet financial instruments (disclosed at cost): Fair values for the Company’s off-balance sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing. The estimated fair values of the Bank’s financial instruments not required to be measured or reported at fair value were as follows at December 31, 2018 and December 31, 2017. (In thousands): Fair Value Measurements at December 31, 2018 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents (1) $ 18,348 $ 18,348 $ 18,348 $ - $ - Loans receivable, net 841,730 840,134 - - 840,134 Mortgage servicing rights 178 220 - - 220 Regulatory stock (1) 3,926 3,926 3,926 - - Bank owned life insurance (1) 37,932 37,932 37,932 - - Accrued interest receivable (1) 3,776 3,776 3,776 - - Financial liabilities: Deposits 946,780 945,773 601,604 - 344,169 Short-term borrowings (1) 53,046 53,046 53,046 - - Other borrowings 52,284 52,043 - - 52,043 Accrued interest payable (1) 1,806 1,806 1,806 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - Fair Value Measurements at December 31, 2017 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents (1) $ 16,697 $ 16,697 $ 16,697 $ - $ - Loans receivable, net 756,458 756,092 - - 756,092 Mortgage servicing rights 200 223 - - 223 Regulatory stock (1) 3,505 3,505 3,505 - - Bank owned life insurance (1) 37,060 37,060 37,060 - - Accrued interest receivable (1) 3,716 3,716 3,716 - - Financial liabilities: Deposits 929,384 929,709 609,090 - 320,619 Short-term borrowings (1) 42,530 42,530 42,530 - - Other borrowings 35,945 35,514 - - 35,514 Accrued interest payable (1) 1,434 1,434 1,434 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - (1) This financial instrument is carried at cost, which approximates the fair value of the instrument. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | NOTE 15 – ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables present the changes in accumulated other comprehensive income (loss) (in thousands) by component, net of tax, for the years ended December 31, 2018 and 2017: Unrealized gains (losses) on available for sale Unrealized gain (loss) on securities (a) pension liability (a) Total (a) Balance as of December 31, 2017 $ (3,041) $ 374 $ (2,667) Other comprehensive income (loss) before reclassification (2,349) 164 (2,185) Amount reclassified from accumulated other comprehensive loss (168) - (168) Total other comprehensive loss (2,517) 164 (2,353) Balance as of December 31, 2018 $ (5,558) $ 538 $ (5,020) Unrealized gains (losses) on available for sale Unrealized gain on securities (a) pension liability (a) Total (a) Balance as of December 31, 2016 $ (4,437) $ 318 $ (4,119) Other comprehensive income (loss) before reclassification 2,127 (11) 2,116 Amount reclassified from accumulated other comprehensive loss (230) - (230) Total other comprehensive income 1,897 (11) 1,886 Reclassification of certain income tax effects from accumulated other comprehensive loss (501) 67 (434) Balance as of December 31, 2017 $ (3,041) $ 374 $ (2,667) (a) All amounts are net of tax. Amounts in parentheses indicate debits. The following table presents significant amounts reclassified out of each component of accumulated other comprehensive income (loss) (in thousands) for the years ended December 31, 2018 and 2017: Amount Reclassified From Accumulated Affected Line Item in Other Consolidated Comprehensive Statement of Details about other comprehensive income Income (Loss) (a) Income Twelve months Twelve months ended ended December 31, December 31, 2018 2017 Unrealized gains on available for sale securities $ 213 $ 348 Net realized gains on sales of securities (45) (118) Income tax expense $ 168 $ 230 (a) Amounts in parentheses indicate debits to net income. |
Norwood Financial Corp (Parent
Norwood Financial Corp (Parent Company Only) Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Norwood Financial Corp (Parent Company Only) Financial Information [Abstract] | |
Norwood Financial Corp (Parent Company Only) Financial | NOTE 16 - NORWOOD FINANCIAL CORP (PARENT COMPANY ONLY) FINANCIAL INFORMATION BALANCE SHEETS December 31, 2018 2017 (In Thousands) ASSETS Cash on deposit in bank subsidiary $ 2,509 $ 4,782 Investment in bank subsidiary 120,511 110,218 Other assets 1,739 2,858 Total assets $ 124,759 $ 117,858 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities $ 2,474 $ 2,119 Stockholders’ equity 122,285 115,739 Total liabilities and stockholders' equity $ 124,759 $ 117,858 STATEMENTS OF INCOME Years Ended December 31, 2018 2017 Income: (In Thousands) Dividends from bank subsidiary $ 5,643 $ 5,412 Net realized gain on sales of securities - 130 Other interest income - 8 5,643 5,550 Expenses 618 511 5,025 5,039 Income tax benefit (217) (127) 5,242 5,166 Equity in undistributed earnings of subsidiary 8,409 3,032 Net Income $ 13,651 $ 8,198 Comprehensive Income $ 11,298 $ 10,084 STATEMENTS OF CASH FLOWS Years Ended December 31, 2018 2017 (In Thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 13,651 $ 8,198 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed earnings of bank subsidiary (8,409) (3,032) Net gains on sales of securities - (130) Decrease in deferred income tax 1,158 1,736 Other, net 387 389 Net Cash Provided by Operating Activities 6,787 7,161 CASH FLOWS FROM INVESTING ACTIVITIES Investment in bank subsidiary (4,000) - Proceeds from sales of securities - 422 Net Cash (Used in) Provided by Investing Activities (4,000) 422 CASH FLOWS FROM FINANCING ACTIVITIES Stock options exercised 520 1,040 Sale of treasury stock for ESOP 123 127 Acquisition of treasury stock (194) (1,587) Cash dividends paid (5,509) (5,386) Net Cash Used in Financing Activities (5,060) (5,806) Net (Decrease) Increase in Cash and Cash Equivalents (2,273) 1,777 CASH AND CASH EQUIVALENTS - BEGINNING 4,782 3,005 CASH AND CASH EQUIVALENTS - ENDING $ 2,509 $ 4,782 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly-owned subsidiaries, WCB Realty Corp., Norwood Investment Corp., Norwood Settlement Services, LLC and WTRO Properties. In June 2017, the Bank adopted a plan of dissolution for Norwood Settlement Services, LLC. Effective May 29, 2018, the existence of Norwood Settlement Services, LLC, was terminated. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Estimates | Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of deferred tax assets, the determination of other-than-temporary impairment on securities, the determination of goodwill impairment and the fair value of financial instruments. |
Significant Group Concentrations of Credit Risk and Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located within its markets in Northeastern Pennsylvania and the Southern Tier of New York. Note 3 discusses the types of securities that the Company invests in. Note 4 discusses the types of lending that the Company engages in. The Company does not have any significant concentrations to any one industry or customer. Concentrations of Credit Risk The Bank operates primarily in Wayne, Pike, Lackawanna and Monroe Counties, Pennsylvania and Delaware and Sullivan Counties, New York. Accordingly, the Bank has extended credit primarily to commercial entities and individuals in these areas whose ability to honor their contracts is influenced by the region’s economy. These customers are also the primary depositors of the Bank. The Bank is limited in extending credit by legal lending limits to any single borrower or group of related borrowers. |
Securities | Securities Securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Any decision to sell a security classified as available for sale would be based on various factors, including significant movement in interest rates, changes in maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Securities available for sale are carried at fair value. Unrealized gains and losses are reported in other comprehensive income, net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using a method which approximates the interest method over the term of the security. Bonds, notes and debentures for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the term of the security. Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each Consolidated Balance Sheet date. Declines in the fair value of available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent of the Company to not sell the securities and it is more likely than not that it will not have to sell the securities before recovery of their cost basis. |
Regulatory Stock | Regulatory Stock The Company, as a member of the Federal Home Loan Bank (FHLB) system is required to maintain an investment in capital stock of its district FHLB according to a predetermined formula. This regulatory stock has no quoted market value and is carried at cost. Management evaluates the regulatory stock for impairment. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. Management considers the FHLB’s regulatory capital ratios, liquidity, and the fact that new shares of FHLB stock continue to change hands at the $100 par value. Management believes no impairment charge is necessary related to FHLB stock as of December 31, 2018. |
Loans Receivable | Loans Receivable Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees. Interest income is accrued on the unpaid principal balance. Loan origination fees are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Company is generally amortizing these amounts over the contractual life of the loan. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest received on nonaccrual loans generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. |
Troubled Debt Restructurings | Troubled Debt Restructurings A loan is considered to be a troubled debt restructuring (TDR) loan when the Company grants a concession to the borrower because of the borrower’s financial condition that it would not otherwise consider. Such concessions include the reduction of interest rates, forgiveness of principal or interest, or other modifications of interest rates that are less than the current market rate for new obligations with similar risk. |
Loans Acquired | Loans Acquired Loans acquired including loans that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance. Loans are evaluated individually to determine if there is evidence of deterioration of credit quality since origination. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment or as a loss accrual or a valuation allowance. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining estimated life. Decreases in expected cash flows are recognized immediately as impairment. Any valuation allowances on these impaired loans reflect only losses incurred after the acquisition. For purchased loans acquired that are not deemed impaired at acquisition, credit discounts representing the principal losses expected over the life of the loan are a component of the initial fair value. Loans may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. Subsequent to the purchase date, the methods utilized to estimate the required allowance for credit losses for these loans is similar to originated loans; however, the Company records a provision for loan losses only when the required allowance exceeds any remaining credit discounts. The remaining differences between the purchase price and the unpaid principal balance at the date of acquisition are recorded in interest income over the life of the loans. |
Mortgage Servicing Rights | Mortgage Servicing Rights Servicing assets are recognized as separate assets when rights are acquired through purchase or through the sale of financial assets. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon a third party appraisal. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment is recognized through a valuation allowance to the extent that fair value is less than the capitalized amount. The Company’s loan servicing assets at December 31, 2018 and 2017, respectively, were no t impaired. Total servicing assets included in other assets as of December 31, 2018 and 2017, were $178,000 and $200,000 , respectively. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established through provisions for loan losses charged against income. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management’s periodic evaluation of the adequacy of the allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are classified as substandard. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential real estate loans for impairment disclosures, unless such loans were acquired with impairment or are the subject of a restructuring agreement. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation expense is calculated principally on the straight-line method over the respective assets estimated useful lives as follows: Years Buildings and improvements 10 - 40 Furniture and equipment 3 - 10 |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets, including loan and loan participation sales, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Foreclosed Real Estate | Foreclosed Real Estate Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value less cost to sell at the date of foreclosure establishing a new cost basis. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of its carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in other expenses. |
Bank Owned Life Insurance | Bank Owned Life Insurance The Company invests in bank owned life insurance (BOLI) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance by the Bank on a select group of employees. The Company is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Income from the increase in cash surrender value of the policies or from death benefits realized is included in other income on the Consolidated Statements of Income. |
Goodwill | Goodwill In connection with two acquisitions the Company recorded goodwill in the amount of $11.3 million, representing the excess of amounts paid over the fair value of net assets of the institutions acquired. Goodwill is tested and deemed impaired when the carrying value of goodwill exceeds its implied fair value. The value of the goodwill can change in the future. We expect the value of the goodwill to decrease if there is a significant decrease in the franchise value of the Bank. If an impairment loss is determined in the future, we will reflect the loss as an expense for the period in which the impairment is determined, leading to a reduction of our net income for that period by the amount of the impairment loss. No impairment was recognized for the years ended December 31, 2018 and 2017. |
Other Intangible Assets | Other Intangible Assets At December 31, 2018, the Company had other intangible assets of $336,000, which is net of accumulated amortization of $1,008,000 . These intangible assets will continue to be amortized using the sum-of-the-years digits method of amortization over ten years. At December 31, 2017, the Company had other intangible assets of $462,000 which was net of accumulated amortization of $883,000 . Amortization expense related to other intangible assets was $126,000 and $150,000 for the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018, the estimated future amortization expense for the core deposit intangible is as follows (in thousands): 2019 $ 101 2020 77 2021 52 2022 38 2023 29 Thereafter 39 $ 336 |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are determined based on the differences between financial statement carrying amounts and the tax basis of existing assets and liabilities. These differences are measured at the enacted tax rates that will be in effect when these differences reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. On December 22, 2017, the President signed the Tax Cut and Jobs Act (the “Act”) into law. Among other things, the Act reduced the corporate tax rate from a maximum of 35% to a flat 21% rate effective January 1, 2018. As a result of the reduction in the corporate income tax rate to 21% , the Company revalued its net deferred tax asset as of December 31, 2017, which resulted in a $3,060,000 reduction in its value. The reduction in the value of the net deferred tax asset was recorded as additional income tax expense in the fourth quarter of 2017. The Company and its subsidiary file a consolidated federal income tax return. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company analyzes each tax position taken in its tax returns and determines the likelihood that the position will be realized. Only tax positions that are “more-likely-than-not” to be realized can be recognized in an entity’s financial statements. For tax positions that do not meet this recognition threshold, an entity will record an unrecognized tax benefit for the difference between the position taken on the tax return and the amount recognized in the financial statements. The Company does not have any unrecognized tax benefits at December 31, 2018 or 2017, or during the years then ended. No unrecognized tax benefits are expected to arise within the next twelve months. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. |
Earnings Per Share | Earnings per Share Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period less any unvested restricted shares. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method. Treasury shares are not deemed outstanding for earnings per share calculations. |
Employee Benefit Plans | Employee Benefit Plans The Company has a defined contributory profit-sharing plan which includes provisions of a 401(k) plan. The Company’s contributions are expensed as the cost is incurred. The Company has several supplemental executive retirement plans. To fund the benefits under these plans, the Company is the owner of single premium life insurance policies on the participants. The Company provides pension benefits to eligible employees. The Company’s funding policy is to contribute at least the minimum required contributions annually. |
Stock Option Plans | Stock Option Plans The Company recognizes the value of share-based payment transactions as compensation costs in the financial statements over the period that an employee provides service in exchange for the award. The fair value of the share-based payments for stock options is estimated using the Black-Scholes option-pricing model. The Company used the modified-prospective transition method to record compensation expense. Under the modified-prospective method, companies are required to record compensation cost for new and modified awards over the related vesting period of such awards and record compensation cost prospectively for the unvested portion, at the date of adoption, of previously issued and outstanding awards over the remaining vesting period of such awards. No change to prior periods presented is permitted under the modified-prospective method. |
Restricted Stock | Restricted Stock The Company recognizes compensation cost related to restricted stock based on the market price of the stock at the grant date over the vesting period. The product of the number of shares granted and the grant date market price of the Company’s common stock determines the fair value of restricted stock under the Company’s 2014 Equity Incentive Plan. The Company recognizes compensation expense for the fair value of the restricted stock on a straight-line basis over the requisite service period for the entire award. |
Cash Flow Information | Cash Flow Information For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing deposits with banks and federal funds sold. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, letters of credit and commitments to sell loans. Such financial instruments are recorded on the balance sheets when they become receivable or payable. |
Trust Assets | Trust Assets Assets held by the Company in a fiduciary capacity for customers are not included in the financial statements since such items are not assets of the Company. Trust income is reported on the accrual method. |
Treasury Stock | Treasury Stock Common shares repurchased are recorded as treasury stock at cost. |
Comprehensive Income | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and defined benefit pension obligations, are reported as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income as presented in the Consolidated Statement of Comprehensive Income. |
Segment Reporting | Segment Reporting The Company acts as an independent community financial services provider and offers traditional banking related financial services to individual, business and government customers. Through its Community Office and automated teller machine network, the Company offers a full array of commercial and retail financial services, including the taking of time, savings and demand deposits; the making of commercial, consumer and mortgage loans; and the providing of safe deposit services. The Company also performs personal, corporate, pension and fiduciary services through its Trust Department. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail, mortgage banking and trust operations of the Company. As such, discrete information is not available and segment reporting would not be meaningful. |
Reclassification of Comparative Amounts | Reclassification of Comparative Amounts Certain comparative amounts for the prior year have been reclassified to conform to current-year classifications. Such reclassifications had no material effect on net income or stockholders’ equity. |
New and Recently Adopted Accounting Pronouncements | New and Recently Adopted Accounting Pronouncements Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Upon adoption on January 1, 2018, we have included the related new disclosure requirements in Note 1. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This Update applies to all entities that hold financial assets or owe financial liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. Among other things, this Update (a) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. Upon adoption on January 1, 2018, we have included the related new disclosure requirements in Note 14. New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the practical expedients it may elect at adoption, but does not anticipate the amendments will have a significant impact on the financial statements. Based on the Company’s preliminary analysis of its current portfolio, the impact to the Company’s balance sheet is estimated to result in less than a one percent increase in assets and liabilities. The Company also anticipates additional disclosures will be provided at adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission (SEC) filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities that are adopting the amendments in this Update, should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. This Update is not expected to have a significant impact on the Company’s financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beg inning after December 15, 2018. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842) , which provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current lease guidance in Topic 840. An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date the entity adopts Topic 842; otherwise, an entity should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in ASU 2016-02. T he Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. ASU 2018-04, Investments – Debt Securities (Topic 320) and Regulated Operations (Topic 980) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273, ASU 2018-04 supersedes various SEC paragraphs and adds an SEC paragraph pursuant to the issuance of Staff Accounting Bulletin No. 117. In May 2018, the FASB issued ASU 2018-06, Codification Improvements to Topic 942, Financial Services – Depository and Lending , which supersedes outdated guidance related to the Office of the Comptroller of the Currency (OCC)’s Banking Circular 202, Accounting for Net Deferred Tax Charges (Circular 202), because that guidance has been rescinded by the OCC and no longer is relevant. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) , which simplified the accounting for nonemployee share-based payment transactions. The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments in this Update improve the following areas of nonemployee share-based payment accounting: (a) the overall measurement objective, (b) the measurement date, (c) awards with performance conditions, (d) classification reassessment of certain equity-classified awards, (e) calculated value (nonpublic entities only), and (f) intrinsic value (nonpublic entities only). The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. In July 2018, the FASB issued ASU 2018-09, Codification Improvements , which represents changes to clarify, correct errors in, or make minor improvements to the Codification. The amendments make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. The transition and effective date guidance is based on the facts and circumstances of each amendment. Some of the amendments do not require transition guidance and will be effective upon issuance of this ASU. However, many of the amendments in this ASU do have transition guidance with effective dates for annual periods beginning after December 15, 2018, for public business entities. This Update is not expected to have a significant impact on the Company’s financial statements. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases , represents changes to clarify, correct errors in, or make minor improvements to the Codification. The amendments in this ASU affect the amendments in ASU 2016-02, which are not yet effective, but for which early adoption upon issuance is permitted. For entities that early adopted Topic 842, the amendments are effective upon issuance of this ASU, and the transition requirements are the same as those in Topic 842. For entities that have not adopted Topic 842, the effective date and transition requirements will be the same as the effective date and transition requirements in Topic 842. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements . This Update provides another transition method which allows entities to initially apply ASC 842 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Entities that elect this approach should report comparative periods in accordance with ASC 840, Leases . In addition, this Update provides a practical expedient under which lessors may elect, by class of underlying assets, to not separate nonlease components from the associated lease component, similar to the expedient provided for lessees. However, the lessor practical expedient is limited to circumstances in which the nonlease component or components otherwise would be accounted for under the new revenue guidance and both (a) the timing and pattern of transfer are the same for the nonlease component(s) and associated lease component and (b) the lease component, if accounted for separately, would be classified as an operating lease. If the nonlease component or components associated with the lease component are the predominant component of the combined component, an entity should account for the combined component in accordance with ASC 606, Revenue from Contracts with Customers . Otherwise, the entity should account for the combined component as an operating lease in accordance with ASC 842. If a lessor elects the practical expedient, certain disclosures are required. This Update is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements . The Update removes the requirement to disclose the amount of and reasons for transfers between Level I and Level II of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level III fair value measurements. The Update requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level III fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level III fair value measurements. This Update is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits (Topic 715-20). This Update amends ASC 715 to add, remove and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The Update eliminates the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year. The Update also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost and the benefit obligation for postretirement health care benefits. This Update is effective for public business entities for fiscal years ending after December 15, 2020, and must be applied on a retrospective basis. For all other entities, this Update is effective for fiscal years ending after December 15, 2021. This Update is not expected to have a significant impact on the Company’s financial statements. In November, 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, which amended the effective date of ASU 2016-13 for entities other than public business entities (PBEs), by requiring non-PBEs to adopt the standard for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Therefore, the revised effective dates of ASU 2016-13 for PBEs that are SEC filers will be fiscal years beginning after December 15, 2019, including interim periods within those years, PBEs other than SEC filers will be for fiscal years beginning after December 15, 2020, including interim periods within those years, and all other entities (non-PBEs) will be for fiscal years beginning after December 15, 2021, including interim periods within those years. The ASU also clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Rather, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases . The effective date and transition requirements for ASU 2018-19 are the same as those in ASU 2016-13, as amended by ASU 2018-19. This Update is not expected to have a significant impact on the Company’s financial statements. In December 2018, the FASB issued ASU 2018-20, Leases (Topic 842), which addressed implementation questions arising from stakeholders in regard to ASU 2016-02, Leases . Specifically addressed in this Update were issues related to 1) sales taxes and other similar taxes collected from lessees, 2) certain lessor costs, and 3) recognition of variable payments for contracts with lease and nonlease components. The amendments in this Update affect the amendments in Update 2016-02 , which are not yet effective but can be early adopted. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Update 2016-02 (for example, January 1, 2019, for calendar-year-end public business entities). T he Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. |
Nature of Operations (Tables)
Nature of Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Nature of Operations [Abstract] | |
Summary of Noninterest Income | (dollars in thousands) 2018 Noninterest Income In-scope of Topic 606: Service charges on deposit accounts $ 263 ATM Fees 398 Overdraft Fees 1,505 Safe deposit box rental 96 Loan related service fees 515 Debit card 1,330 Fiduciary activities 589 Commissions on mutual funds & annuities 185 Other income 782 Noninterest Income (in-scope of Topic 606) 5,663 Out-of-scope of Topic 606: Net realized gains on sales of securities 213 Loan servicing fees 48 Gain on sales of loans 15 Earnings on and proceeds from bank-owned life insurance 1,126 Noninterest Income (out-of-scope of Topic 606) 1,402 Total Noninterest Income $ 7,065 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | Years Buildings and improvements 10 - 40 Furniture and equipment 3 - 10 |
Schedule of Estimated Future Amortization Expense for the Core Deposit Intangible | 2019 $ 101 2020 77 2021 52 2022 38 2023 29 Thereafter 39 $ 336 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Securities [Abstract] | |
Schedule of Amortized Cost Gross Unrealized Gains and Losses, and Fair Values of Securities | December 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) AVAILABLE FOR SALE: States and political subdivisions $ 99,218 $ 385 $ (1,990) $ 97,613 Corporate obligations 8,896 - (256) 8,640 Mortgage-backed securities- government sponsored entities 142,197 25 (5,198) 137,024 Total debt securities $ 250,311 $ 410 $ (7,444) $ 243,277 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In Thousands) AVAILABLE FOR SALE: U.S. Treasury securities $ 2,001 $ - $ (3) $ 1,998 States and political subdivisions 120,000 1,535 (1,057) 120,478 Corporate obligations 10,068 16 (95) 9,989 Mortgage-backed securities- government sponsored entities 152,901 17 (4,262) 148,656 Total debt securities $ 284,970 $ 1,568 $ (5,417) $ 281,121 |
Schedule of Investments' Gross Unrealized Losses and Fair Value Aggregated by Security Type and Length of Time that Individual Securities have been in a Continous Unrealized Loss Position | December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses States and political subdivisions $ 19,140 $ (390) $ 56,740 $ (1,600) $ 75,880 $ (1,990) Corporate obligations 2,045 (21) 6,595 (235) 8,640 (256) Mortgage-backed securities-government sponsored entities 8,444 (22) 122,950 (5,176) 131,394 (5,198) $ 29,629 $ (433) $ 186,285 $ (7,011) $ 215,914 $ (7,444) December 31, 2017 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities $ - $ - $ 1,998 $ (3) $ 1,998 $ (3) States and political subdivisions 17,310 (228) 44,948 (829) 62,258 (1,057) Corporate obligations - - 6,859 (95) 6,859 (95) Mortgage-backed securities-government sponsored entities 22,250 (320) 125,846 (3,942) 148,096 (4,262) $ 39,560 $ (548) $ 179,651 $ (4,869) $ 219,211 $ (5,417) |
Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | Amortized Fair Cost Value (In Thousands) Due in one year or less $ 1,666 $ 1,671 Due after one year through five years 22,532 22,130 Due after five years through ten years 44,638 43,454 Due after ten years 39,278 38,998 108,114 106,253 Mortgage-backed securities - government sponsored entities 142,197 137,024 $ 250,311 $ 243,277 |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loans Receivable and Allowance for Loan Losses [Abstract] | |
Composition of the Loan Portfolio | December 31, 2018 December 31, 2017 Real Estate: Residential $ 235,523 27.7 % $ 235,759 30.8 % Commercial 374,790 44.1 342,934 44.9 Construction 17,445 2.0 17,228 2.3 Commercial, financial and agricultural 110,542 13.0 97,461 12.7 Consumer loans to individuals 112,002 13.2 70,953 9.3 Total loans 850,302 100.0 % 764,335 100.0 % Deferred fees, net (120) (243) Total loans receivable 850,182 764,092 Allowance for loan losses (8,452) (7,634) Net loans receivable $ 841,730 $ 756,458 |
Changes in the Accretable Yield for Purchased Credit-impaired Loans | 2018 2017 Balance at beginning of period $ 108 $ 208 Additions - - Accretion (56) (73) Reclassification and other (23) (27) Balance at end of period $ 29 $ 108 |
Information Regarding Loans Acquired and Accounted for in Accordance With ASC 310-30 | December 31, 2018 December 31, 2017 Outstanding Balance $ 1,055 $ 1,444 Carrying Amount $ 886 $ 1,174 |
Summary of Amount of Loans in Each Category that were Individually and Collectively Evaluated for Impairment | Real Estate Loans Commercial Consumer Residential Commercial Construction Loans Loans Total (In thousands) December 31, 2018 Individually evaluated for impairment $ - $ 1,319 $ - $ - $ - $ 1,319 Loans acquired with deteriorated credit quality 630 256 - - - 886 Collectively evaluated for impairment 234,893 373,215 17,445 110,542 112,002 848,097 Total Loans $ 235,523 $ 374,790 $ 17,445 $ 110,542 $ 112,002 $ 850,302 Real Estate Loans Commercial Consumer Residential Commercial Construction Loans Loans Total (In thousands) December 31, 2017 Individually evaluated for impairment $ 23 $ 1,224 $ - $ - $ - $ 1,247 Loans acquired with deteriorated credit quality 833 341 - - - 1,174 Collectively evaluated for impairment 234,903 341,369 17,228 97,461 70,953 761,914 Total Loans $ 235,759 $ 342,934 $ 17,228 $ 97,461 $ 70,953 $ 764,335 |
Impaired Loans and Related Interest Income by Loan Portfolio Class | Unpaid Recorded Principal Associated Investment Balance Allowance December 31, 2018 (In thousands) With no related allowance recorded: Real Estate Loans Commercial $ 1,319 $ 1,747 $ - Subtotal 1,319 1,747 - Total: Real Estate Loans Commercial 1,319 1,747 - Total Impaired Loans $ 1,319 $ 1,747 $ - Unpaid Recorded Principal Associated Investment Balance Allowance December 31, 2017 (In thousands) With no related allowance recorded: Real Estate Loans Residential $ 23 $ 28 $ - Commercial 1,224 1,496 - Subtotal 1,247 1,524 - Total: Real Estate Loans Residential 23 28 - Commercial 1,224 1,496 - Total Impaired Loans $ 1,247 $ 1,524 $ - The following information for impaired loans is presented for the years ended December 31, 2018 and 2017: Average Recorded Average Recorded Interest Income Investment Recognized 2018 2017 2018 2017 (In thousands) Total: Real Estate Loans Residential $ - $ 23 $ - $ - Commercial 1,220 1,209 67 56 Total Loans $ 1,220 $ 1,232 $ 67 $ 56 |
Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating | Special Pass Mention Substandard Doubtful Loss Total December 31, 2018 Commercial real estate loans $ 360,838 $ 7,918 $ 6,034 $ - $ - $ 374,790 Commercial 109,966 82 494 - - 110,542 Total $ 470,804 $ 8,000 $ 6,528 $ - $ - $ 485,332 Special Pass Mention Substandard Doubtful Loss Total December 31, 2017 Commercial real estate loans $ 329,617 $ 9,680 $ 3,637 $ - $ - $ 342,934 Commercial 97,389 16 56 - - 97,461 Total $ 427,006 $ 9,696 $ 3,693 $ - $ - $ 440,395 For residential real estate loans, construction loans and consumer loans, the Company evaluates credit quality based on the performance of the individual credits. Nonperforming loans include loans that have been placed on nonaccrual status and loans remaining in accrual status on which the contractual payment of principal and interest has become 90 days past due. The following table presents the recorded investment in the loan classes based on payment activity as of December 31, 2018 and December 31, 2017 (in thousands): Performing Nonperforming Total December 31, 2018 Residential real estate loans $ 234,725 $ 798 $ 235,523 Construction 17,445 - 17,445 Consumer loans to individuals 112,002 - 112,002 Total $ 364,172 $ 798 $ 364,970 Performing Nonperforming Total December 31, 2017 Residential real estate loans $ 233,966 $ 1,793 $ 235,759 Construction 17,228 - 17,228 Consumer loans to individuals 70,953 - 70,953 Total $ 322,147 $ 1,793 $ 323,940 |
Loan Portfolio Summarized by the Past Due Status | Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due and still accruing Non-Accrual Total Past Due and Non-Accrual Total Loans December 31, 2018 Real Estate loans Residential $ 234,201 $ 373 $ 151 $ - $ 798 $ 1,322 $ 235,523 Commercial 372,617 1,043 788 - 342 2,173 374,790 Construction 17,445 - - - - - 17,445 Commercial loans 110,191 320 31 - - 351 110,542 Consumer loans 111,796 171 35 - - 206 112,002 Total $ 846,250 $ 1,907 $ 1,005 $ - $ 1,140 $ 4,052 $ 850,302 Current 31-60 Days Past Due 61-90 Days Past Due Greater than 90 Days Past Due and still accruing Non-Accrual Total Past Due and Non-Accrual Total Loans December 31, 2017 Real Estate loans Residential $ 233,291 $ 594 $ 81 $ 87 $ 1,706 $ 2,468 $ 235,759 Commercial 341,602 646 - 409 277 1,332 342,934 Construction 17,228 - - - - - 17,228 Commercial loans 97,424 10 27 - - 37 97,461 Consumer loans 70,869 60 24 - - 84 70,953 Total $ 760,414 $ 1,310 $ 132 $ 496 $ 1,983 $ 3,921 $ 764,335 |
Allowance for Loan Losses and Recorded Investment in Financing Receivables | The following table presents the allowance for loan losses by the classes of the loan portfolio: (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, December 31, 2017 $ 1,272 $ 5,265 $ 90 $ 463 $ 544 $ 7,634 Charge Offs (197) (283) - (246) (263) (989) Recoveries 9 33 - 8 32 82 Provision for loan losses 244 440 3 487 551 1,725 Ending balance, December 31, 2018 $ 1,328 $ 5,455 $ 93 $ 712 $ 864 $ 8,452 Ending balance individually evaluated for impairment $ - $ - $ - $ - $ - $ - Ending balance collectively evaluated for impairment $ 1,328 $ 5,455 $ 93 $ 712 $ 864 $ 8,452 (In thousands) Residential Real Estate Commercial Real Estate Construction Commercial Consumer Total Beginning balance, December 31, 2016 $ 1,092 $ 4,623 $ 78 $ 307 $ 363 $ 6,463 Charge Offs (83) (902) (28) - (207) (1,220) Recoveries 6 159 - - 26 191 Provision for loan losses 257 1,385 40 156 362 2,200 Ending balance, December 31, 2017 $ 1,272 $ 5,265 $ 90 $ 463 $ 544 $ 7,634 Ending balance individually evaluated for impairment $ - $ - $ - $ - $ - $ - Ending balance collectively evaluated for impairment $ 1,272 $ 5,265 $ 90 $ 463 $ 544 $ 7,634 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Premises and Equipment [Abstract] | |
Componenets of Premises and Equipment | Components of premises and equipment at December 31 are as follows: 2018 2017 (In Thousands) Land and improvements $ 2,832 $ 2,771 Buildings and improvements 17,788 17,613 Furniture and equipment 7,171 6,636 27,791 27,020 Accumulated depreciation (13,945) (13,156) $ 13,846 $ 13,864 |
Schedule of Future Minimum Rental Commitments Under Noncancellable Leases | 2019 $ 454 2020 452 2021 452 2022 452 2023 452 Thereafter 4,202 $ 6,464 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Schedule of Maturities of Time Deposits | 2019 $ 212,786 2020 81,453 2021 17,246 2022 17,374 2023 16,318 $ 345,177 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Borrowings [Abstract] | |
Short-Term Borrowings | Short-term borrowings at December 31 consist of the following: 2018 2017 (In Thousands) Securities sold under agreements to repurchase $ 37,457 $ 24,286 Federal Home Loan Bank short-term borrowings 15,589 18,244 $ 53,046 $ 42,530 The outstanding balances and related information of short-term borrowings are summarized as follows: Years Ended December 31, 2018 2017 (Dollars In Thousands) Average balance during the year $ 41,963 $ 39,170 Average interest rate during the year 0.77 % 0.51 % Maximum month-end balance during the year $ 53,046 $ 54,286 Weighted average interest rate at the end of the year 1.27 % 0.87 % |
Collateral Pledged for Repurchase Agreements | As of December 31, 2018 Remaining Contractual Maturity of the Agreements Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total Repurchase Agreements: Mortgage-backed securities - government sponsored entities $40,161 $ - $ - $ - $40,161 Total liability recognized for repurchase agreements $37,457 As of December 31, 2017 Remaining Contractual Maturity of the Agreements Overnight and continuous Up to 30 days 30-90 days Greater than 90 days Total Repurchase Agreements: Mortgage-backed securities - government sponsored entities $26,626 $ - $ - $ - $26,626 Total liability recognized for repurchase agreements $24,286 |
Other Borrowings | 2018 2017 (In Thousands) Amortizing fixed rate borrowing due January 2018 at 0.91% $ - $ 51 Amortizing fixed rate borrowing due December 2018 at 1.42% - 823 Amortizing fixed rate borrowing due January 2019 at 1.39% 423 5,451 Fixed rate term borrowing due August 2019 at 1.61% 10,000 10,000 Amortizing fixed rate borrowing due June 2020 at 1.49% 3,079 5,093 Amortizing fixed rate borrowing due July 2020 at 2.77% 7,962 - Amortizing fixed rate borrowing due December 2020 at 1.71% 5,000 3,051 Amortizing fixed rate borrowing due December 2020 at 3.06% 2,051 - Amortizing fixed rate borrowing due March 2022 at 1.75% 2,877 3,730 Amortizing fixed rate borrowing due October 2022 at 1.88% 6,200 7,746 Amortizing fixed rate borrowing due October 2023 at 3.24% 9,692 - Amortizing fixed rate borrowing due December 2023 at 3.22% 5,000 - $ 52,284 $ 35,945 |
Contractual Maturities of Other Borrowings | 2019 $ 26,234 2020 13,018 2021 5,581 2022 4,760 2023 2,691 $ 52,284 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefit Plans [Abstract] | |
Schedule Of Projected Benefit Obligation And Changes In Plan Assets For The Defined Benefit Pension Plan | (in Thousands of Dollars) 2018 2017 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ (8,465) $ (8,084) Service cost (64) (68) Interest cost (279) (303) Actuarial gain (loss) 1,040 (587) Benefits paid 582 577 Benefit obligation at end of year $ (7,186) $ (8,465) Change in plan assets: Fair value of plan assets at beginning of year $ 7,110 $ 6,702 Actual return on plan assets (401) 981 Benefits paid (573) (573) Fair value of assets at end of year 6,136 7,110 Funded status at end of year $ (1,050) $ (1,355) |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income | 2018 2017 Transition asset $ - $ - Prior service credit - - Gain 207 473 Total $ 207 $ 473 |
Components Of Net Pension Cost (Income) | 2018 2017 Service cost benefits earned during the period $ 64 $ 68 Interest cost on projected benefit obligation 279 303 Actual return on assets (441) (416) Net amortization and deferral - - NET PERIODIC PENSION COST $ (98) $ (45) |
Schedule of Weighted Average Assumptions Used to Determine the Benefit Obligation and the Net Periodic Cost | The weighted average assumptions used to determine the benefit obligation at December 31 are as follows: 2018 2017 Discount rate 4.54 % 3.43 % The weighted average assumptions used to determine the net periodic pension cost at December 31 are as follows: 2018 2017 Discount rate 3.43 % 3.90 % Expected long-term return on plan assets 6.50 % 6.50 % Rate of compensation increase 0.00 % 0.00 % |
Schedule of Asset Allocation and Fair Value of Plan Assets | The Delaware Plan’s weighted-average asset allocations at December 31, by asset category, are as follows: 2018 2017 Cash equivalents 4.2 % 6.4 % Equity securities 46.1 % 50.2 % Fixed income securities 45.8 % 40.2 % Other 3.9 % 3.2 % 100.0 % 100.0 % The Delaware Plan’s overall investment strategy is to achieve a mix of approximately 97 percent of investments for long-term growth and 3 percent for near-term benefit payments with a wide diversification of asset types, fund strategies, and fund managers. The target allocation for the Delaware Plan assets is 0 to 20 percent cash equivalents, 40 to 60 percent equity securities, 40 to 60 percent fixed income securities, and 0 to 5 percent other. Cash equivalents consist primarily of government issues and short-term investment funds. Equity securities primarily include investments in common stock, depository receipts, preferred stock, and real estate investment trusts. Fixed income securities include corporate bonds, government issues, mortgage-backed securities, municipals, and other asset backed securities. The fair value of the Delaware Plan’s assets, by asset category, is as follows: December 31, 2018 Quoted Market Other Price in Observable Unobservable Active Markets Inputs Inputs Total (Level 1) (Level 2) (Level 3) (in thousands of dollars) Cash equivalents: Cash (including foreign currencies) $ 6 $ 6 $ - $ - Equity securities: Common stock 2,475 2,475 - - Depository receipts 42 42 - - Preferred stock 20 20 - - Fixed income securities: Corporate bonds 608 - 608 - Government issue 2,228 - 2,228 - Collateralized mortgage obligations 156 - 156 - Other 601 - - 601 Total $ 6,136 $ 2,543 $ 2,992 $ 601 December 31, 2017 Quoted Market Other Price in Observable Unobservable Active Markets Inputs Inputs Total (Level 1) (Level 2) (Level 3) (in thousands of dollars) Cash equivalents: Cash (including foreign currencies) $ 70 $ 70 $ - $ - Short-term investment funds 19 - 19 - Equity securities: Common stock 1,401 1,401 - - Depository receipts 35 35 - - Commingled Pension Trust Fund 2,203 - 2,203 - Preferred stock 31 31 - - Fixed income securities: Corporate bonds 296 - 296 - Government issue 992 - 992 - Mortgage-backed securities 6 - 6 - Collateralized mortgage obligations 56 - 56 - Commingled Pension Trust Fund 1,746 - 1,746 - Other 255 - - 255 Total $ 7,110 $ 1,537 $ 5,318 $ 255 |
Schedule of Changes in Level 3 Assets | 2018 2017 Balance, January 1 $ 255 $ 283 Purchase - - Unrealized gain (loss) 346 (28) Balance, December 31 $ 601 $ 255 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Schedule of Components of the Provision for Federal Income Taxes | Years Ended December 31, 2018 2017 (In Thousands) Current $ 2,529 $ 3,822 Change in corporate tax rate - 3,060 Deferred 24 (331) $ 2,553 $ 6,551 |
Schedule of Effective Income Tax Rate Reconciliation | Percentage of Income before Income Taxes Years Ended December 31, 2018 2017 Tax at statutory rates 21.0 % 35.0 % Tax exempt interest income, net of interest expense disallowance (4.9) (9.6) Incentive stock options 0.2 0.2 Earnings and proceeds on life insurance (1.1) (2.7) Change in corporate tax rate - 20.8 Other 0.6 0.7 15.8 % 44.4 % |
Schedule of Deferred Tax Assets and Liabilties | 2018 2017 (In Thousands) Deferred tax assets: Allowance for loan losses $ 1,775 $ 1,603 Deferred compensation 766 775 Core deposit intangible 278 232 Prepaid expenses 90 125 Pension liability 263 384 Foreclosed real estate valuation allowance 20 7 AMT tax credit carryforward 260 260 Net operating loss carryforward 1,173 1,249 Net unrealized loss on securities 1,477 808 Other 95 92 Total Deferred Tax Assets 6,197 5,535 Deferred tax liabilities: Premises and equipment 223 210 Deferred loan fees 186 142 Net unrealized gain on pension liability 43 99 Purchase price adjustment 321 303 Total Deferred Tax Liabilities 773 754 Net Deferred Tax Asset $ 5,424 $ 4,781 |
Regulatory Matters and Stockh_2
Regulatory Matters and Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Matters and Stockholders' Equity [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | To be Well Capitalized under Prompt For Capital Adequacy Corrective Action Actual Purposes Provision Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) As of December 31, 2018: Total capital (to risk-weighted assets) $ 122,917 14.00 % ≥$70,248 ≥8.00 % ≥$87,810 ≥10.00 % Tier 1 capital (to risk-weighted assets) 114,465 13.04 ≥52,686 ≥6.00 ≥70,248 ≥8.00 Common Equity Tier 1 capital (to risk-weighted assets) 114,465 13.04 ≥39,515 ≥4.50 ≥57,077 ≥6.50 Tier 1 capital (to average assets) 114,465 9.82 ≥46,619 ≥4.00 ≥58,273 ≥5.00 As of December 31, 2017: Total capital (to risk-weighted assets) $ 113,091 14.11 % ≥$64,126 ≥8.00 % ≥$80,158 ≥10.00 % Tier 1 capital (to risk-weighted assets) 105,457 13.16 ≥48,095 ≥6.00 ≥64,126 ≥8.00 Common Equity Tier 1 capital (to risk-weighted assets) 105,457 13.16 ≥36,071 ≥4.50 ≥52,103 ≥6.50 Tier 1 capital (to average assets) 105,457 9.36 ≥45,075 ≥4.00 ≥56,343 ≥5.00 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stock Based Compensation [Abstract] | |
Summary of Stock Option Activity | 2018 2017 Weighted Weighted Average Average Average Average Exercise Intrinsic Exercise Intrinsic Options Price Value Options Price Value Outstanding, beginning of year 212,725 $ 20.76 225,669 $ 19.46 Granted 28,900 32.34 34,750 32.81 Exercised (28,275) 18.39 (44,219) 23.53 Forfeited (4,650) 27.08 (3,475) 21.71 Outstanding, end of year 208,700 $ 22.54 $ 2,182,537 212,725 $ 20.76 $ 2,604,097 Exercisable, end of year 179,800 $ 20.97 $ 2,163,463 177,975 $ 18.41 $ 2,597,494 |
Schedule of Fair Value Assumptions | Years Ended December 31, 2018 2017 Dividend yield 3.72% 3.89% Expected life 10 years 10 years Expected volatility 29.10% 29.11% Risk-free interest rate 2.68% 2.41% Weighted average fair value of options granted $ 7.18 $ 6.83 |
Schedule of Outstanding Stock Options | Average Average Options Exercise Remaining Options Exercise Outstanding Price Life, Years Exercisable Price 14,775 $ 17.33 1.0 14,775 $ 17.33 14,025 16.83 2.0 14,025 16.83 18,825 16.65 3.0 18,825 16.65 26,400 18.03 4.0 26,400 18.03 1,650 18.36 4.0 1,650 18.36 3,000 19.30 4.8 3,000 19.30 25,375 17.93 5.0 25,375 17.93 12,000 19.39 5.9 12,000 19.39 13,500 19.03 6.9 13,500 19.03 18,500 22.37 8.0 18,500 22.37 31,750 32.81 9.0 31,750 32.81 28,900 32.34 10.0 - - Total 208,700 179,800 |
Summary of Restricted Stock Activity | 2018 2017 Weighted-Average Weighted-Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Non-vested, beginning of year 30,415 $24.46 28,035 $20.64 Granted 13,100 32.34 9,400 32.81 Vested (8,900) 23.00 (7,020) 20.37 Forfeited - - - - Non-vested at December 31 34,615 $27.82 30,415 $24.46 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
EARNINGS PER SHARE | |
Computations of Basic and Diluted Earnings Per Share | Years Ended December 31, 2018 2017 (In Thousands, Except Per Share Data) Numerator, net income $ 13,651 $ 8,198 Denominator: Weighted average shares outstanding 6,263 6,238 Less: Weighted average unvested restricted shares (31) (28) Denominator: Basic earnings per share 6,232 6,210 Weighted average shares outstanding, basic 6,232 6,210 Add: Dilutive effect of stock options 58 61 Denominator: Diluted earnings per share 6,290 6,271 Basic earnings per common share $ 2.19 $ 1.32 Diluted earnings per common share $ 2.17 $ 1.31 |
Off-Balance Sheet Financial I_2
Off-Balance Sheet Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Off-Balance Sheet Financial Instruments [Abstract] | |
Schedule of Fair Value, Off-balance Sheet Risks | December 31, 2018 2017 (In Thousands) Commitments to grant loans $ 45,246 $ 44,970 Unfunded commitments under lines of credit 71,906 62,228 Standby letters of credit 4,269 5,919 $ 121,421 $ 113,117 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | Fair Value Measurement Reporting Date using Description Total Level 1 Level 2 Level 3 December 31, 2018 Available for Sale: States and political subdivisions $ 97,613 $ - $ 97,613 $ - Corporate obligations 8,640 - 8,640 - Mortgage-backed securities-government sponsored entities 137,024 - 137,024 - Total available for sale $ 243,277 $ - $ 243,277 $ - December 31, 2017 Available for Sale: U.S. Treasury securities $ 1,998 $ - $ 1,998 $ - States and political subdivisions 120,478 - 120,478 - Corporate obligations 9,989 - 9,989 - Mortgage-backed securities-government sponsored entities 148,656 - 148,656 - Total available for sale $ 281,121 $ - $ 281,121 $ - |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | Fair Value Measurement Reporting Date using Description Total Level 1 Level 2 Level 3 December 31, 2018 Impaired Loans $ 1,319 $ - $ - $ 1,319 Foreclosed real estate 1,115 - - 1,115 December 31, 2017 Impaired Loans $ 1,247 $ - $ - $ 1,247 Foreclosed real estate 1,661 - - 1,661 |
Additional Qualitative Information about Level 3 Assets | Quantitative Information about Level 3 Fair Value Measurements (dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2018 Impaired loans $ 232 Appraisal of collateral(1) Appraisal adjustments(2) 10.00 - 81.54% ( 56.06% ) Impaired loans $ 1,087 Present value of future cash flows Loan discount rate 4.00 - 6.00% ( 5.80% ) Probability of default 0% Foreclosed real estate owned $ 1,115 Appraisal of collateral(1) Liquidation Expenses(2) 7.00 - 85.71% ( 7.80% ) Quantitative Information about Level 3 Fair Value Measurements (dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2017 Impaired loans $ 131 Appraisal of collateral(1) Appraisal adjustments(2) 10% ( 10% ) Impaired loans $ 1,116 Present value of future cash flows Loan discount rate 4 -5.25% ( 5.11% ) Probability of default 0% Foreclosed real estate owned $ 1,661 Appraisal of collateral(1) Liquidation Expenses(2) 0 - 42.60% ( 14.68% ) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable, less any associated allowance. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. |
Fair Value, by Balance Sheet Grouping | Fair Value Measurements at December 31, 2018 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents (1) $ 18,348 $ 18,348 $ 18,348 $ - $ - Loans receivable, net 841,730 840,134 - - 840,134 Mortgage servicing rights 178 220 - - 220 Regulatory stock (1) 3,926 3,926 3,926 - - Bank owned life insurance (1) 37,932 37,932 37,932 - - Accrued interest receivable (1) 3,776 3,776 3,776 - - Financial liabilities: Deposits 946,780 945,773 601,604 - 344,169 Short-term borrowings (1) 53,046 53,046 53,046 - - Other borrowings 52,284 52,043 - - 52,043 Accrued interest payable (1) 1,806 1,806 1,806 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - Fair Value Measurements at December 31, 2017 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents (1) $ 16,697 $ 16,697 $ 16,697 $ - $ - Loans receivable, net 756,458 756,092 - - 756,092 Mortgage servicing rights 200 223 - - 223 Regulatory stock (1) 3,505 3,505 3,505 - - Bank owned life insurance (1) 37,060 37,060 37,060 - - Accrued interest receivable (1) 3,716 3,716 3,716 - - Financial liabilities: Deposits 929,384 929,709 609,090 - 320,619 Short-term borrowings (1) 42,530 42,530 42,530 - - Other borrowings 35,945 35,514 - - 35,514 Accrued interest payable (1) 1,434 1,434 1,434 - - Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit - - - - - |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Summary of Changes In Accumulated Other Comprehensive Income (Loss) | Unrealized gains (losses) on available for sale Unrealized gain (loss) on securities (a) pension liability (a) Total (a) Balance as of December 31, 2017 $ (3,041) $ 374 $ (2,667) Other comprehensive income (loss) before reclassification (2,349) 164 (2,185) Amount reclassified from accumulated other comprehensive loss (168) - (168) Total other comprehensive loss (2,517) 164 (2,353) Balance as of December 31, 2018 $ (5,558) $ 538 $ (5,020) Unrealized gains (losses) on available for sale Unrealized gain on securities (a) pension liability (a) Total (a) Balance as of December 31, 2016 $ (4,437) $ 318 $ (4,119) Other comprehensive income (loss) before reclassification 2,127 (11) 2,116 Amount reclassified from accumulated other comprehensive loss (230) - (230) Total other comprehensive income 1,897 (11) 1,886 Reclassification of certain income tax effects from accumulated other comprehensive loss (501) 67 (434) Balance as of December 31, 2017 $ (3,041) $ 374 $ (2,667) (a) All amounts are net of tax. Amounts in parentheses indicate debits. |
Significant Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Income (Loss) | Amount Reclassified From Accumulated Affected Line Item in Other Consolidated Comprehensive Statement of Details about other comprehensive income Income (Loss) (a) Income Twelve months Twelve months ended ended December 31, December 31, 2018 2017 Unrealized gains on available for sale securities $ 213 $ 348 Net realized gains on sales of securities (45) (118) Income tax expense $ 168 $ 230 (a) Amounts in parentheses indicate debits to net income. |
Norwood Financial Corp (Paren_2
Norwood Financial Corp (Parent Company Only) Financial Information (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | |
Parent Company Only - Balance Sheets | BALANCE SHEETS December 31, 2018 2017 (In Thousands) ASSETS Cash on deposit in bank subsidiary $ 2,509 $ 4,782 Investment in bank subsidiary 120,511 110,218 Other assets 1,739 2,858 Total assets $ 124,759 $ 117,858 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities $ 2,474 $ 2,119 Stockholders’ equity 122,285 115,739 Total liabilities and stockholders' equity $ 124,759 $ 117,858 |
Parent Company Only - Statements of Income | STATEMENTS OF INCOME Years Ended December 31, 2018 2017 Income: (In Thousands) Dividends from bank subsidiary $ 5,643 $ 5,412 Net realized gain on sales of securities - 130 Other interest income - 8 5,643 5,550 Expenses 618 511 5,025 5,039 Income tax benefit (217) (127) 5,242 5,166 Equity in undistributed earnings of subsidiary 8,409 3,032 Net Income $ 13,651 $ 8,198 Comprehensive Income $ 11,298 $ 10,084 |
Parent Company Only - Statements of Cash Flows | STATEMENTS OF CASH FLOWS Years Ended December 31, 2018 2017 (In Thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 13,651 $ 8,198 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed earnings of bank subsidiary (8,409) (3,032) Net gains on sales of securities - (130) Decrease in deferred income tax 1,158 1,736 Other, net 387 389 Net Cash Provided by Operating Activities 6,787 7,161 CASH FLOWS FROM INVESTING ACTIVITIES Investment in bank subsidiary (4,000) - Proceeds from sales of securities - 422 Net Cash (Used in) Provided by Investing Activities (4,000) 422 CASH FLOWS FROM FINANCING ACTIVITIES Stock options exercised 520 1,040 Sale of treasury stock for ESOP 123 127 Acquisition of treasury stock (194) (1,587) Cash dividends paid (5,509) (5,386) Net Cash Used in Financing Activities (5,060) (5,806) Net (Decrease) Increase in Cash and Cash Equivalents (2,273) 1,777 CASH AND CASH EQUIVALENTS - BEGINNING 4,782 3,005 CASH AND CASH EQUIVALENTS - ENDING $ 2,509 $ 4,782 |
Nature of Operations (Narrative
Nature of Operations (Narrative) (Details) - segment | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Nature of Operations [Abstract] | ||
Number of Reportable Segments | 1 | |
Common Stock, Dividend Rate, Percentage | 50.00% |
Nature of Operations (Summary o
Nature of Operations (Summary of Noninterest Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Noninterest Income (in scope of Topic 606) | $ 5,663 | |
Net realized gains on sales of securities | 213 | $ 348 |
Loan servicing fees | 48 | |
Gain on sales of loans | 15 | 67 |
Earnings on and proceeds from bank-owned life insurance | 1,126 | 1,133 |
Noninterest Income (out-of-scope of Topic 606) | 1,402 | |
Total Other Income | 7,065 | $ 6,911 |
Service Charges On Deposit Accounts [Member] | ||
Noninterest Income (in scope of Topic 606) | 263 | |
ATM Fees [Member] | ||
Noninterest Income (in scope of Topic 606) | 398 | |
Overdraft Fees [Member] | ||
Noninterest Income (in scope of Topic 606) | 1,505 | |
Safe Deposit Box Rental [Member] | ||
Noninterest Income (in scope of Topic 606) | 96 | |
Loan Related Service Fees [Member] | ||
Noninterest Income (in scope of Topic 606) | 515 | |
Debit Card [Member] | ||
Noninterest Income (in scope of Topic 606) | 1,330 | |
Fiduciary Activities [Member] | ||
Noninterest Income (in scope of Topic 606) | 589 | |
Commissions On Mutual Funds And Annuities [Member] | ||
Noninterest Income (in scope of Topic 606) | 185 | |
Other Income [Member] | ||
Noninterest Income (in scope of Topic 606) | $ 782 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |||
Regulatory Stock, Par Value | $ 100 | ||
Impairment of investments | $ 0 | ||
Loan servicing assets, impairment | 0 | $ 0 | |
Servicing Assets | $ 200,000 | 178,000 | 200,000 |
Goodwill | 11,331,000 | 11,331,000 | 11,331,000 |
Goodwill, Impairment Loss | 0 | 0 | |
Intangible Assets, Net (Excluding Goodwill) | 462,000 | 336,000 | 462,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | 883,000 | $ 1,008,000 | 883,000 |
Finite-Lived Intangible Assets, Amortization Method | sum-of-the-years digits method | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Amortization of Intangibles | $ 126,000 | $ 150,000 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 3,060,000 | $ 3,060,000 | |
Unrecognized Tax Benefits | $ 0 | $ 0 | $ 0 |
Unrecognized tax benefits expected within next twelve months | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Estimated Useful Lives ) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum [Member] | Buildings and improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Minimum [Member] | Furniture and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum [Member] | Buildings and improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Maximum [Member] | Furniture and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Schedule of Estimated Future Amortization Expense for the Core Deposit Intangible) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Summary of Significant Accounting Policies [Abstract] | |
2019 | $ 101 |
2020 | 77 |
2021 | 52 |
2022 | 38 |
2023 | 29 |
Thereafter | 39 |
Amortization Expense for the Core Deposit Intangible, Total | $ 336 |
Securities (Narrative) (Details
Securities (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($) | |
Securities [Abstract] | ||
Debt securities in unrealized loss position in the less than twelve months category | security | 43 | |
Debt securities in unrealized loss position in the twelve months or more category | security | 188 | |
Impairment of investments | $ 0 | |
Available-for-sale Securities Pledged as Collateral | 193,918,000 | $ 213,065,000 |
Gross realized gains | 213,000 | 354,000 |
Gross realized losses | 0 | 6,000 |
Proceeds from sales | $ 17,745,000 | $ 15,612,000 |
Securities (Schedule of Amortiz
Securities (Schedule of Amortized Cost Gross Unrealized Gains and Losses, and Fair Values of Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Available for Sale, Gross Unrealized Gains | ||
Available for Sale, Fair Value | $ 243,277 | 281,121 |
Total Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 250,311 | 284,970 |
Available for Sale, Gross Unrealized Gains | 410 | 1,568 |
Available for Sale, Gross Unrealized Losses | (7,444) | (5,417) |
Available for Sale, Fair Value | 243,277 | 281,121 |
US Treasury Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 2,001 | |
Available for Sale, Gross Unrealized Gains | ||
Available for Sale, Gross Unrealized Losses | (3) | |
Available for Sale, Fair Value | 1,998 | |
States and Political Subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 99,218 | 120,000 |
Available for Sale, Gross Unrealized Gains | 385 | 1,535 |
Available for Sale, Gross Unrealized Losses | (1,990) | (1,057) |
Available for Sale, Fair Value | 97,613 | 120,478 |
Corporate Obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 8,896 | 10,068 |
Available for Sale, Gross Unrealized Gains | 16 | |
Available for Sale, Gross Unrealized Losses | (256) | (95) |
Available for Sale, Fair Value | 8,640 | 9,989 |
Mortgage-backed Securities-Government Sponsored Entities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for Sale, Amortized Cost | 142,197 | 152,901 |
Available for Sale, Gross Unrealized Gains | 25 | 17 |
Available for Sale, Gross Unrealized Losses | (5,198) | (4,262) |
Available for Sale, Fair Value | $ 137,024 | $ 148,656 |
Securities (Schedule of Investm
Securities (Schedule of Investments' Gross Unrealized Losses and Fair Value Aggregated by Security Type and Length of Time that Individual Securities have been in a Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
US Treasury Securities [Member] | ||
Schedule of Investments [Line Items] | ||
12 Months or More, Fair Value | $ 1,998 | |
12 Months or More, Unrealized Losses | (3) | |
Total, Fair Value | 1,998 | |
Total, Unrealized Losses | (3) | |
States and Political Subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | $ 19,140 | 17,310 |
Less than 12 Months, Unrealized Losses | (390) | (228) |
12 Months or More, Fair Value | 56,740 | 44,948 |
12 Months or More, Unrealized Losses | (1,600) | (829) |
Total, Fair Value | 75,880 | 62,258 |
Total, Unrealized Losses | (1,990) | (1,057) |
Corporate Obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 2,045 | |
Less than 12 Months, Unrealized Losses | (21) | |
12 Months or More, Fair Value | 6,595 | 6,859 |
12 Months or More, Unrealized Losses | (235) | (95) |
Total, Fair Value | 8,640 | 6,859 |
Total, Unrealized Losses | (256) | (95) |
Mortgage-backed Securities-Government Sponsored Entities [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 8,444 | 22,250 |
Less than 12 Months, Unrealized Losses | (22) | (320) |
12 Months or More, Fair Value | 122,950 | 125,846 |
12 Months or More, Unrealized Losses | (5,176) | (3,942) |
Total, Fair Value | 131,394 | 148,096 |
Total, Unrealized Losses | (5,198) | (4,262) |
Total Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Less than 12 Months, Fair Value | 29,629 | 39,560 |
Less than 12 Months, Unrealized Losses | (433) | (548) |
12 Months or More, Fair Value | 186,285 | 179,651 |
12 Months or More, Unrealized Losses | (7,011) | (4,869) |
Total, Fair Value | 215,914 | 219,211 |
Total, Unrealized Losses | $ (7,444) | $ (5,417) |
Securities (Schedule of Amort_2
Securities (Schedule of Amortized Cost and Fair Value Of Debt Securities by Contractual Maturity) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Securities [Abstract] | |
Available for Sale, Amortized Cost, Due in one year or less | $ 1,666 |
Available for Sale, Amortized Cost, Due after one year through five years | 22,532 |
Available for Sale, Amortized Cost, Due after five years through ten years | 44,638 |
Available for Sale, Amortized Cost, Due after ten years | 39,278 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total | 108,114 |
Available for Sale, Amortized Cost, Mortgage-backed securities- government sponsored agencies | 142,197 |
Available for Sale, Amortized Cost, Total | 250,311 |
Available for Sale, Fair Value, Due in one year or less | 1,671 |
Available for Sale, Fair Value, Due after one year through five years | 22,130 |
Available for Sale, Fair Value, Due after five years through ten years | 43,454 |
Available for Sale, Fair Value, Due after ten years | 38,998 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Total | 106,253 |
Available for Sale, Fair Value, Mortgage-backed securities- government sponsored agencies | 137,024 |
Available for Sale, Fair Value, Total | $ 243,277 |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Loan Losses (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | $ 0 | ||
Impaired Financing Receivable, Related Allowance | |||
Impaired Financing Receivable, Average Recorded Investment | 1,220,000 | 1,232,000 | $ 0 |
Impaired Financing Receivable, Interest Income, Cash Basis Method | 67,000 | 56,000 | 0 |
Foreclosed Real Estate Expense | 172,000 | 1,164,000 | |
Acquired Loans with Specific Evidence of Deterioration in Credit Quality, Outstanding Balance | 1,055,000 | 1,444,000 | |
Real Estate Acquired Through Foreclosure | 1,115,000 | 1,661,000 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,319,000 | 1,247,000 | |
Annual Loan Review threshold, amount | 1,500,000 | ||
Loans and Leases Receivable, Gross | 850,302,000 | 764,335,000 | |
Charge Offs | 989,000 | 1,220,000 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 86,100,000 | ||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 818,000 | ||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 98,000 | 163,000 | |
Allowance for Loan and Lease Losses, Real Estate | $ 8,452,000 | $ 7,634,000 | |
Historical loss factor | 0.26% | 0.41% | |
Servicing Asset at Amortized Cost | $ 26,800,000 | $ 29,000,000 | |
Mortgage loans originated for sale | 752,000 | 0 | |
Customer Concentration Risk [Member] | Loans Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Charge Offs | 0 | 762,000 | |
Commercial Rentals [Member] | Loans Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | $ 71,800,000 | ||
Concentration Risk, Percentage | 68.90% | ||
Hospitality Lodging Industry [Member] | Loans Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | $ 59,700,000 | ||
Concentration Risk, Percentage | 57.30% | ||
Residential Real Estate Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, Related Allowance | |||
Impaired Financing Receivable, Average Recorded Investment | 23,000 | ||
Impaired Financing Receivable, Interest Income, Cash Basis Method | |||
Real Estate Acquired Through Foreclosure | $ 36,000 | ||
Number Of Properties Under Foreclosure Proceedings | loan | 3 | ||
Mortgage Loans in Process of Foreclosure, Amount | $ 298,000 | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 23,000 | ||
Loans and Leases Receivable, Gross | 235,523,000 | 235,759,000 | |
Charge Offs | 197,000 | 83,000 | |
Proceeds from Sale of Mortgage Loans Held-for-sale | 767,000,000 | 0 | |
Gross Realized Gains on Loans | 15,000 | 0 | |
Gross Realized Losses on Loans | 0 | 0 | |
Commercial Real Estate Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, Related Allowance | |||
Impaired Financing Receivable, Average Recorded Investment | 1,220,000 | 1,209,000 | 0 |
Impaired Financing Receivable, Interest Income, Cash Basis Method | 67,000 | 56,000 | 0 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,319,000 | 1,224,000 | |
Loans and Leases Receivable, Gross | 374,790,000 | 342,934,000 | |
Charge Offs | 283,000 | 902,000 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 22,747,000 | ||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 642,000 | ||
Allowance for Loan and Lease Losses, Real Estate | $ 5,265,000 | $ 4,623,000 | |
Historical loss factor | 0.74% | 0.80% | |
Troubled Debt Restructured Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1,100,000 | $ 1,100,000 | |
Impaired Financing Receivable, Related Allowance | $ 0 | $ 0 | |
New Loans Identified as Troubled Debt Restructurings, Number of Loans | loan | 0 | 0 | |
Mortgage Loans on Real Estate, Number of Foreclosures | loan | 1 | 1 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Foreclosure | $ 23,000 | $ 322,000 | |
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 0 | 55,000 | |
Impaired Loans Requiring Allowance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 | |
Impaired Loans Not Requiring Allowance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,319,000 | 1,247,000 | |
Charge Offs | $ 428,000 | $ 277,000 |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Loan Losses (Composition of the Loan Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 850,302 | $ 764,335 | |
Deferred fees, net | (120) | (243) | |
Total loans receivable | 850,182 | 764,092 | |
Allowance for loan losses | (8,452) | (7,634) | $ (6,463) |
Net loans receivable | $ 841,730 | $ 756,458 | |
Percent of Loans | 100.00% | 100.00% | |
Residential Real Estate Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 235,523 | $ 235,759 | |
Allowance for loan losses | $ (1,328) | $ (1,272) | (1,092) |
Percent of Loans | 27.70% | 30.80% | |
Commercial Real Estate Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 374,790 | $ 342,934 | |
Allowance for loan losses | $ (5,455) | $ (5,265) | (4,623) |
Percent of Loans | 44.10% | 44.90% | |
Construction Real Estate Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 17,445 | $ 17,228 | |
Allowance for loan losses | $ (93) | $ (90) | (78) |
Percent of Loans | 2.00% | 2.30% | |
Commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 110,542 | $ 97,461 | |
Allowance for loan losses | $ (712) | $ (463) | (307) |
Percent of Loans | 13.00% | 12.70% | |
Consumer Loans To Individuals [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 112,002 | $ 70,953 | |
Allowance for loan losses | $ (864) | $ (544) | $ (363) |
Percent of Loans | 13.20% | 9.30% |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Loan Losses (Changes in the Accretable Yield for Purchased Credit Impaired Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Loans Receivable and Allowance for Loan Losses [Abstract] | ||
Balance at beginning of period | $ 108 | $ 208 |
Additions | ||
Accretion | (56) | (73) |
Reclassification and other | (23) | (27) |
Balance at end of period | $ 29 | $ 108 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Loan Losses (Information Regarding Loans Acquired and Accounted for in Accordance with ASC 310-30) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Loans Receivable and Allowance for Loan Losses [Abstract] | ||
Outstanding Balance | $ 1,055 | $ 1,444 |
Carrying Amount | $ 886 | $ 1,174 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Loan Losses (Summary of Amount of Loans in Each Category that were Individually and Collectively Evaluated for Impairment) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | $ 1,319 | $ 1,247 |
Loans acquired with deteriorated credit quality | 886 | 1,174 |
Collectively evaluated for impairment | 848,097 | 761,914 |
Total Loans | 850,302 | 764,335 |
Residential Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 23 | |
Loans acquired with deteriorated credit quality | 630 | 833 |
Collectively evaluated for impairment | 234,893 | 234,903 |
Total Loans | 235,523 | 235,759 |
Commercial Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 1,319 | 1,224 |
Loans acquired with deteriorated credit quality | 256 | 341 |
Collectively evaluated for impairment | 373,215 | 341,369 |
Total Loans | 374,790 | 342,934 |
Construction Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collectively evaluated for impairment | 17,445 | 17,228 |
Total Loans | 17,445 | 17,228 |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collectively evaluated for impairment | 110,542 | 97,461 |
Total Loans | 110,542 | 97,461 |
Consumer Loans To Individuals [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collectively evaluated for impairment | 112,002 | 70,953 |
Total Loans | $ 112,002 | $ 70,953 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Loan Losses (Impaired Loans and Related Interest Income by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 1,319 | $ 1,247 | |
Impaired Financing Receivable, Recorded Investment | 1,319 | 1,247 | |
Unpaid Principal Balance, With no related allowance recorded | 1,747 | 1,524 | |
Unpaid Principal Balance, Total | 1,747 | 1,524 | |
Associated Allowance | |||
Average Recorded Investment, Total | 1,220 | 1,232 | $ 0 |
Interest Income Recognized, Total | 67 | 56 | 0 |
Impaired Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 1,319 | 1,247 | |
Associated Allowance | 0 | ||
Residential Real Estate Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 23 | ||
Impaired Financing Receivable, Recorded Investment | 23 | ||
Unpaid Principal Balance, With no related allowance recorded | 28 | ||
Unpaid Principal Balance, Total | 28 | ||
Associated Allowance | |||
Average Recorded Investment, Total | 23 | ||
Interest Income Recognized, Total | |||
Commercial Real Estate Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,319 | 1,224 | |
Impaired Financing Receivable, Recorded Investment | 1,319 | 1,224 | |
Unpaid Principal Balance, With no related allowance recorded | 1,747 | 1,496 | |
Unpaid Principal Balance, Total | 1,747 | 1,496 | |
Associated Allowance | |||
Average Recorded Investment, Total | 1,220 | 1,209 | 0 |
Interest Income Recognized, Total | $ 67 | $ 56 | $ 0 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Loan Losses (Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Total Summarized by Aggregate Risk Rating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | $ 485,332 | $ 440,395 |
Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 470,804 | 427,006 |
Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 8,000 | 9,696 |
Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 6,528 | 3,693 |
Doubtful Or Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | |
Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | |
Total Summarized by Performance of Individual Credits [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 364,970 | 323,940 |
Performing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 364,172 | 322,147 |
Nonperforming [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 798 | 1,793 |
Commercial Real Estate Loans [Member] | Total Summarized by Aggregate Risk Rating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 374,790 | 342,934 |
Commercial Real Estate Loans [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 360,838 | 329,617 |
Commercial Real Estate Loans [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 7,918 | 9,680 |
Commercial Real Estate Loans [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 6,034 | 3,637 |
Commercial Real Estate Loans [Member] | Doubtful Or Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | |
Commercial Real Estate Loans [Member] | Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | |
Commercial [Member] | Total Summarized by Aggregate Risk Rating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 110,542 | 97,461 |
Commercial [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 109,966 | 97,389 |
Commercial [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 82 | 16 |
Commercial [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 494 | 56 |
Commercial [Member] | Doubtful Or Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | |
Commercial [Member] | Loss [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 0 | |
Residential Real Estate Loans [Member] | Total Summarized by Performance of Individual Credits [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 235,523 | 235,759 |
Residential Real Estate Loans [Member] | Performing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 234,725 | 233,966 |
Residential Real Estate Loans [Member] | Nonperforming [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 798 | 1,793 |
Construction Real Estate Loans [Member] | Total Summarized by Performance of Individual Credits [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 17,445 | 17,228 |
Construction Real Estate Loans [Member] | Performing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 17,445 | 17,228 |
Construction Real Estate Loans [Member] | Nonperforming [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | ||
Consumer Loans To Individuals [Member] | Total Summarized by Performance of Individual Credits [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 112,002 | 70,953 |
Consumer Loans To Individuals [Member] | Performing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount | 112,002 | 70,953 |
Consumer Loans To Individuals [Member] | Nonperforming [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Amount |
Loans Receivable and Allowan_10
Loans Receivable and Allowance for Loan Losses (Loan Portfolio Summarized by the Past Due Status) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 846,250 | $ 760,414 |
Non-Accrual | 1,140 | 1,983 |
Total Past Due and Non-Accrual | 4,052 | 3,921 |
Total Loans | 850,302 | 764,335 |
Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,907 | 1,310 |
Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,005 | 132 |
Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 496 | |
Residential Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 234,201 | 233,291 |
Non-Accrual | 798 | 1,706 |
Total Past Due and Non-Accrual | 1,322 | 2,468 |
Total Loans | 235,523 | 235,759 |
Residential Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 373 | 594 |
Residential Real Estate Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 151 | 81 |
Residential Real Estate Loans [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 87 | |
Commercial Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 372,617 | 341,602 |
Non-Accrual | 342 | 277 |
Total Past Due and Non-Accrual | 2,173 | 1,332 |
Total Loans | 374,790 | 342,934 |
Commercial Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,043 | 646 |
Commercial Real Estate Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 788 | |
Commercial Real Estate Loans [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 409 | |
Construction Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 17,445 | 17,228 |
Non-Accrual | ||
Total Past Due and Non-Accrual | ||
Total Loans | 17,445 | 17,228 |
Construction Real Estate Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | ||
Construction Real Estate Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | ||
Construction Real Estate Loans [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | ||
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 110,191 | 97,424 |
Non-Accrual | ||
Total Past Due and Non-Accrual | 351 | 37 |
Total Loans | 110,542 | 97,461 |
Commercial [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 320 | 10 |
Commercial [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 31 | 27 |
Commercial [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | ||
Consumer Loans To Individuals [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 111,796 | 70,869 |
Non-Accrual | ||
Total Past Due and Non-Accrual | 206 | 84 |
Total Loans | 112,002 | 70,953 |
Consumer Loans To Individuals [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 171 | 60 |
Consumer Loans To Individuals [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 35 | 24 |
Consumer Loans To Individuals [Member] | Financing Receivables, Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due |
Loans Receivable and Allowan_11
Loans Receivable and Allowance for Loan Losses (Allowance for Loan Losses and Recorded Investment in Financing Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance, | $ 7,634 | $ 6,463 |
Charge Offs | (989) | (1,220) |
Recoveries | 82 | 191 |
Provision for loan losses | 1,725 | 2,200 |
Ending balance, | 8,452 | 7,634 |
Ending balance individually evaluated for impairment | ||
Ending balance collectively evaluated for impairment | 8,452 | 7,634 |
Residential Real Estate Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance, | 1,272 | 1,092 |
Charge Offs | (197) | (83) |
Recoveries | 9 | 6 |
Provision for loan losses | 244 | 257 |
Ending balance, | 1,328 | 1,272 |
Ending balance individually evaluated for impairment | ||
Ending balance collectively evaluated for impairment | 1,328 | 1,272 |
Commercial Real Estate Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance, | 5,265 | 4,623 |
Charge Offs | (283) | (902) |
Recoveries | 33 | 159 |
Provision for loan losses | 440 | 1,385 |
Ending balance, | 5,455 | 5,265 |
Ending balance individually evaluated for impairment | ||
Ending balance collectively evaluated for impairment | 5,455 | 5,265 |
Construction Real Estate Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance, | 90 | 78 |
Charge Offs | (28) | |
Recoveries | ||
Provision for loan losses | 3 | 40 |
Ending balance, | 93 | 90 |
Ending balance individually evaluated for impairment | ||
Ending balance collectively evaluated for impairment | 93 | 90 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance, | 463 | 307 |
Charge Offs | (246) | |
Recoveries | 8 | |
Provision for loan losses | 487 | 156 |
Ending balance, | 712 | 463 |
Ending balance individually evaluated for impairment | ||
Ending balance collectively evaluated for impairment | 712 | 463 |
Consumer Loans To Individuals [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance, | 544 | 363 |
Charge Offs | (263) | (207) |
Recoveries | 32 | 26 |
Provision for loan losses | 551 | 362 |
Ending balance, | 864 | 544 |
Ending balance individually evaluated for impairment | ||
Ending balance collectively evaluated for impairment | $ 864 | $ 544 |
Premises and Equipment (Narrati
Premises and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Premises and Equipment [Abstract] | ||
Depreciation expense | $ 895 | $ 922 |
Rent expense | $ 470 | $ 405 |
Premises and Equipment (Compone
Premises and Equipment (Components of Premises and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 27,791 | $ 27,020 |
Accumulated depreciation | (13,945) | (13,156) |
Property, Plant and Equipment, Net, Total | 13,846 | 13,864 |
Land and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,832 | 2,771 |
Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 17,788 | 17,613 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 7,171 | $ 6,636 |
Premises and Equipment (Schedul
Premises and Equipment (Schedule of Future Minimum Rental Commitments Under Noncancellable Leases) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Premises and Equipment [Abstract] | |
2019 | $ 454 |
2020 | 452 |
2021 | 452 |
2022 | 452 |
2023 | 452 |
Thereafter | 4,202 |
Operating Leases, Future Minimum Payments Due, Total | $ 6,464 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Time Deposits, $250,000 or More | $ 112,665 | $ 92,527 |
Deposits (Schedule of Maturitie
Deposits (Schedule of Maturities of Time Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
2019 | $ 212,786 | |
2020 | 81,453 | |
2021 | 17,246 | |
2022 | 17,374 | |
2023 | 16,318 | |
Time Deposits, Total | $ 345,177 | $ 320,294 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | $ 193,918,000 | $ 213,065,000 |
FHLB of Pittsburgh [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | 15,589,000 | 18,244,000 |
Line of Credit Facility, Maximum Borrowing Capacity | 150,000,000 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | 398,936,000 | |
Advances from Federal Home Loan Banks | 67,873,000 | |
Outstanding letter of credit amount | 45,000,000 | |
Atlantic Community Bankers Bank [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | 0 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 7,000,000 | |
PNC Bank [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | 0 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 16,000,000 | |
Zion Bank [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | 0 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 17,000,000 | |
Securities Sold under Agreements to Repurchase [Member] | ||
Debt Instrument [Line Items] | ||
Available-for-sale securities pledged as collateral, amortized cost | 41,587,000 | 27,255,000 |
Available-for-sale Securities Pledged as Collateral | $ 40,161,000 | $ 26,626,000 |
Borrowings (Short-Term Borrowin
Borrowings (Short-Term Borrowings) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 53,046 | $ 42,530 |
Securities Sold under Agreements to Repurchase [Member] | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 37,457 | 24,286 |
FHLB of Pittsburgh [Member] | Federal Home Loan Bank Advances [Member] | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 15,589 | $ 18,244 |
Borrowings (Outstanding Balance
Borrowings (Outstanding Balances and Related Information of Short-Term Borrowings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Borrowings [Abstract] | ||
Short-term Debt, Average Balance During the Year | $ 41,963 | $ 39,170 |
Short-term Debt, Average Interest Rate During the Year | 0.77% | 0.51% |
Short-term Debt, Maximum Month-end Balance During The Year | $ 53,046 | $ 54,286 |
Short-term Debt, Weighted Average Interest Rate at the End of the Year | 1.27% | 0.87% |
Borrowings (Collateral Pledged
Borrowings (Collateral Pledged for Repurchase Agreements) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | $ 193,918 | $ 213,065 |
Short-term Borrowings | 53,046 | 42,530 |
Mortgage-backed Securities-Government Sponsored Entities [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | 40,161 | 26,626 |
Maturity Overnight [Member] | Mortgage-backed Securities-Government Sponsored Entities [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | 40,161 | 26,626 |
Securities Sold under Agreements to Repurchase [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | 40,161 | 26,626 |
Short-term Borrowings | $ 37,457 | $ 24,286 |
Borrowings (Other Borrowings) (
Borrowings (Other Borrowings) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term Federal Home Loan Bank Advances | $ 52,284 | $ 35,945 |
Amortizing fixed rate borrowing due January 2018 at 0.91% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Federal Home Loan Bank Advances | 51 | |
Debt Instrument, Interest Rate, Stated Percentage | 0.91% | |
Amortizing fixed rate borrowing due December 2018 at 1.42% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Federal Home Loan Bank Advances | 823 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.42% | |
Amortizing fixed rate borrowing due January 2019 at 1.39% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Federal Home Loan Bank Advances | $ 423 | 5,451 |
Debt Instrument, Interest Rate, Stated Percentage | 1.39% | |
Fixed rate term borrowing due August 2019 at 1.61% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Federal Home Loan Bank Advances | $ 10,000 | 10,000 |
Debt Instrument, Interest Rate, Stated Percentage | 1.61% | |
Amortizing fixed rate borrowing due June 2020 at 1.49% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Federal Home Loan Bank Advances | $ 3,079 | 5,093 |
Debt Instrument, Interest Rate, Stated Percentage | 1.49% | |
Amortizing fixed rate borrowing due July 2020 at 2.77% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Federal Home Loan Bank Advances | $ 7,962 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.77% | |
Amortizing fixed rate borrowing due December 2020 at 1.71% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Federal Home Loan Bank Advances | $ 5,000 | 3,051 |
Debt Instrument, Interest Rate, Stated Percentage | 1.71% | |
Amortizing fixed rate borrowing due December 2020 at 3.06% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Federal Home Loan Bank Advances | $ 2,051 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.06% | |
Amortizing fixed rate borrowing due March 2022 at 1.75% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Federal Home Loan Bank Advances | $ 2,877 | 3,730 |
Debt Instrument, Interest Rate, Stated Percentage | 1.75% | |
Amortizing fixed rate borrowing due October 2022 at 1.88% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Federal Home Loan Bank Advances | $ 6,200 | $ 7,746 |
Debt Instrument, Interest Rate, Stated Percentage | 1.88% | |
Amortizing fixed rate borrowing due October 2023 at 3.24% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Federal Home Loan Bank Advances | $ 9,692 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.24% | |
Amortizing fixed rate borrowing due December 2023 at 3.22% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Federal Home Loan Bank Advances | $ 5,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.22% |
Borrowings (Contractual Maturit
Borrowings (Contractual Maturities of Other Borrowings) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Borrowings [Abstract] | ||
2019 | $ 26,234 | |
2020 | 13,018 | |
2021 | 5,581 | |
2022 | 4,760 | |
2023 | 2,691 | |
Long-term Federal Home Loan Bank Advances, Total | $ 52,284 | $ 35,945 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 15.00% | ||
Defined Contribution Plan, Employer Contributions, Vesting Period | 5 years | ||
Defined Contribution Plan, Cost | $ 738 | $ 605 | |
Defined Benefit Plan, Benefit Obligation | 7,186 | 8,465 | $ 8,084 |
Defined Benefit Plan, Net Periodic Benefit Cost | (98) | (45) | |
Defined Benefit Plan, Benefits Paid | 582 | 577 | |
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 510 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 498 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 486 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 487 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 472 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | 2,233 | ||
Change in Projected Benefit Obligation from Change in Projected Discount Rate | 900 | ||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 7,186 | $ 8,465 | |
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% | 100.00% | |
Defined Benefit Plan, Plan Assets, Target Allocation, Long-term Growth, Percentage | 97.00% | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Short-term Growth, Percentage | 3.00% | ||
Accumulated Postretirement Benefit Obligation | $ 1,291 | $ 1,142 | |
Supplemental Employee Retirement Plan, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | 3,362 | 3,360 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | 434 | 301 | |
Cash Surrender Value of Life Insurance | 37,932 | 37,060 | |
Defined Benefit Plan, Net Periodic Benefit Cost | 149 | 168 | |
Multiemployer Plans, Postretirement Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost | 46 | ||
Defined Benefit Plan, Contributions by Employer | $ 46 | $ 46 | |
Defined Benefit Plan, Percentage of Plan Funded | 91.40% | 89.00% | |
Defined Benefit Plan, Contribution Percentage | 5.00% | ||
Cash And Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 4.20% | 6.40% | |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 46.10% | 50.20% | |
Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 45.80% | 40.20% | |
Other Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 3.90% | 3.20% | |
Minimum [Member] | Cash And Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 0.00% | ||
Minimum [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 40.00% | ||
Minimum [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 40.00% | ||
Minimum [Member] | Other Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 0.00% | ||
Maximum [Member] | Cash And Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 20.00% | ||
Maximum [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 60.00% | ||
Maximum [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 60.00% | ||
Maximum [Member] | Other Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 5.00% | ||
Delaware Bancshares, Inc. [Member] | Director Fee Deferral and Continuation Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | $ 249 | $ 331 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | $ 6 | $ 9 | |
Delaware Bancshares, Inc. [Member] | Director Fee Deferral and Continuation Plan [Member] | Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit Payment Period | 5 years | ||
Delaware Bancshares, Inc. [Member] | Director Fee Deferral and Continuation Plan [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit Payment Period | 15 years |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Projected Benefit Obligation and Changes in Plan Assets for the Defined Benefit Pension Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in benefit obligation: | ||||
Projected benefit obligation at beginning of year | $ (8,465) | $ (8,084) | ||
Service cost | (64) | (68) | ||
Interest cost | (279) | (303) | ||
Actuarial gain (loss) | 1,040 | (587) | ||
Benefits paid | 582 | 577 | ||
Benefit obligation at end of year | (7,186) | (8,465) | ||
Change in plan assets: | ||||
Fair value of plan assets at beginning of year | 7,110 | 6,702 | ||
Actual return on plan assets | (401) | 981 | ||
Benefits paid | (573) | (573) | ||
Fair value of plan assets at end of year | $ 7,110 | $ 6,702 | $ 6,136 | $ 7,110 |
Funded status at end of year | $ (1,050) | $ (1,355) |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule of Amounts Recognized in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plans And Other Postretirement Benefits [Abstract] | ||
Gain | $ 207 | $ 473 |
Total | $ 207 | $ 473 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of Net Pension Cost (Income)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plans And Other Postretirement Benefits [Abstract] | ||
Service cost benefits earned during the period | $ 64 | $ 68 |
Interest cost on projected benefit obligation | 279 | 303 |
Actual return on assets | (441) | (416) |
Net amortization and deferral | ||
Net periodic pension cost | $ (98) | $ (45) |
Employee Benefit Plans (Sched_3
Employee Benefit Plans (Schedule of Weighted Average Assumptions Used to Determine the Benefit Obligation And the Net Periodic Cost) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plans And Other Postretirement Benefits [Abstract] | ||
Discount rate, benefit obligation | 4.54% | 3.43% |
Discount rate, net periodic pension cost | 3.43% | 3.90% |
Expected long-term return on plan assets | 6.50% | 6.50% |
Rate of compensation increase | 0.00% | 0.00% |
Employee Benefit Plans (Sched_4
Employee Benefit Plans (Schedule Of Asset Allocation and Fair Value Of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% | 100.00% | |
Total assets | $ 6,136 | $ 7,110 | $ 6,702 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 2,543 | 1,537 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 2,992 | 5,318 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 601 | $ 255 | $ 283 |
Cash And Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 4.20% | 6.40% | |
Cash (Including Foreign Currencies) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 6 | $ 70 | |
Cash (Including Foreign Currencies) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 6 | 70 | |
Short-term Investment Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 19 | ||
Short-term Investment Funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 19 | ||
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 46.10% | 50.20% | |
Common Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 2,475 | $ 1,401 | |
Common Stock [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 2,475 | 1,401 | |
Depository Receipts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 42 | 35 | |
Depository Receipts [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 42 | 35 | |
Commingled Pension Trust Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 2,203 | ||
Commingled Pension Trust Fund [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 2,203 | ||
Preferred Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 20 | 31 | |
Preferred Stock [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 20 | $ 31 | |
Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 45.80% | 40.20% | |
Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 608 | $ 296 | |
Corporate Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 608 | 296 | |
Government Issue [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 2,228 | 992 | |
Government Issue [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 2,228 | 992 | |
Mortgage Backed Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 6 | ||
Mortgage Backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 6 | ||
Collateralized Mortgage Obligations [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 156 | 56 | |
Collateralized Mortgage Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 156 | 56 | |
Commingled Pension Trust Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | 1,746 | ||
Commingled Pension Trust Fund [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 1,746 | ||
Other Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 3.90% | 3.20% | |
Total assets | $ 601 | $ 255 | |
Other Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets | $ 601 | $ 255 |
Employee Benefit Plans (Sched_5
Employee Benefit Plans (Schedule of Changes in Level 3 Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | $ 7,110 | $ 6,702 |
Balacne at end of year | 6,136 | 7,110 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 255 | 283 |
Unrealized gain (loss) | 346 | (28) |
Balacne at end of year | $ 601 | $ 255 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward | $ 4,970 |
Net operating loss carryforward, expiration date | Dec. 31, 2035 |
Earliest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Open Tax Year | 2015 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of the Provision for Federal Income Taxes) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Current | $ 2,529,000 | $ 3,822,000 | |
Change in corporate tax rate | $ 3,060,000 | 3,060,000 | |
Deferred | 24,000 | (331,000) | |
Income Tax Expense (Benefit), Total | $ 2,553,000 | $ 6,551,000 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | ||
Tax at statutory rates | 21.00% | 35.00% |
Tax exempt interest income, net of interest expense disallowance | (4.90%) | (9.60%) |
Incentive stock options | 0.20% | 0.20% |
Earnings and proceeds on life insurance | (1.10%) | (2.70%) |
Change in corporate tax rate | 20.80% | |
Other | 0.60% | 0.70% |
Effective Income Tax Rate, Continuing Operations, Total | 15.80% | 44.40% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilties) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes [Abstract] | ||
Deferred tax assets, Allowance for loan losses | $ 1,775 | $ 1,603 |
Deferred tax assets, Deferred compensation | 766 | 775 |
Deferred tax assets, Core deposit intangible | 278 | 232 |
Deferred tax assets, Prepaid expenses | 90 | 125 |
Deferred tax assets, Pension liability | 263 | 384 |
Deferred tax assets, Foreclosed real estate valuance allowance | 20 | 7 |
Deferred tax assets, AMT tax credit carryforward | 260 | 260 |
Deferred tax assets, Net operating loss carryforward | 1,173 | 1,249 |
Deferred tax assets, Net unrealized loss on securities | 1,477 | 808 |
Deferred tax assets, Other | 95 | 92 |
Total Deferred Tax Assets | 6,197 | 5,535 |
Deferred tax liabilities, Premises and equipment | 223 | 210 |
Deferred tax liablities, Deferred loan fees | 186 | 142 |
Deferred tax liabilities, Net unrealized gain on pension liability | 43 | 99 |
Deferred tax liabilities, Purchase price adjustment | 321 | 303 |
Total Deferred Tax Liabilities | 773 | 754 |
Net Deferred Tax Asset | $ 5,424 | $ 4,781 |
Regulatory Matters and Stockh_3
Regulatory Matters and Stockholders' Equity (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Regulatory Matters and Stockholders' Equity [Abstract] | ||
Restricted Cash and Cash Equivalents | $ 1,018 | $ 1,111 |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 64,886 | |
Risk weight assigned to exposures | 150.00% | |
Capital conservation buffer | 2.50% |
Regulatory Matters and Stockh_4
Regulatory Matters and Stockholders' Equity (Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Regulatory Matters and Stockholders' Equity [Abstract] | ||
Total capital (to risk weighted assets), Amount | $ 122,917 | $ 113,091 |
Total capital (to risk weighted assets) For Capital Adequacy Purposes, Amount | 70,248 | 64,126 |
Total capital (to risk weighted assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 87,810 | $ 80,158 |
Total capital (to risk weighted assets), Ratio | 14.00% | 14.11% |
Total capital (to risk weighted assets) For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Total capital (to risk weighted assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 capital (to risk weighted assets), Amount | $ 114,465 | $ 105,457 |
Tier 1 capital (to risk weighted assets) For Capital Adequacy Purposes, Amount | 52,686 | 48,095 |
Tier 1 capital (to risk weighted assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 70,248 | $ 64,126 |
Tier 1 capital (to risk weighted assets), Ratio | 13.04% | 13.16% |
Tier 1 capital (to risk weighted assets) For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Tier 1 capital (to risk weighted assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Common Equity Tier 1 capital (to risk-weighted assets), amount | $ 114,465 | $ 105,457 |
Common Equity Tier 1 capital (to risk-weighted assets), for Capital Adequacy Purposes, amount | 39,515 | 36,071 |
Common Equity Tier 1 capital (to risk-weighted assets) to be Well Capitalized under Prompt Corrective Action Provision, amount | $ 57,077 | $ 52,103 |
Common Equity Tier 1 capital (to risk-weighted assets), Ratio | 13.04% | 13.16% |
Common Equity Tier 1 capital (to risk-weighted assets) For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 capital (to risk-weighted assets) to be Well Capitalized under Prompt Corrective Action Provision | 6.50% | 6.50% |
Tier 1 capital (to average assets), Amount | $ 114,465 | $ 105,457 |
Tier 1 capital (to average assets) For Capital Adequacy Purposes, Amount | 46,619 | 45,075 |
Tier 1 capital (to average assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 58,273 | $ 56,343 |
Tier 1 capital (to average assets), Ratio | 9.82% | 9.36% |
Tier 1 capital (to average assets) For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets) To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 22, 2014 | Apr. 26, 2006 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, Granted | 28,900 | 34,750 | ||||||
Remaining Life, Years | 5 years 10 months 24 days | |||||||
Stock options exercised | $ 520 | $ 1,040 | ||||||
Compensation expense related to stock options | 237 | 93 | ||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 205 | $ 143 | ||||||
Share price | $ 33 | $ 33 | ||||||
Allocated Share-based Compensation Expense | $ 237 | $ 93 | ||||||
Future compensation expense of non-vested restricted stock outstanding | 963 | 744 | ||||||
Compensation expense related to restricted stock | 205 | 142 | ||||||
Unrecognized Salaries And Employee Benefits Expense | 207 | $ 237 | ||||||
Common Stock, Dividend Rate, Percentage | 50.00% | |||||||
Net Income Reduction | $ 388 | $ 187 | ||||||
Stock options exercised, shares | 28,275 | 44,219 | ||||||
Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share price | $ 16.65 | |||||||
Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share price | $ 32.81 | |||||||
Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted stock, granted | 13,100 | 9,400 | ||||||
Non-vested stock outstanding | 34,615 | 30,415 | 28,035 | |||||
Allocated Share-based Compensation Expense | $ 205 | $ 143 | ||||||
Outside Directors [Member] | Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted stock, granted | 2,400 | |||||||
Common Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 1 | $ 1 | ||||||
Stock options exercised, shares | 25,950 | |||||||
Norwood Financial Corp 2006 Stock Option Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 412,500 | |||||||
Options, Granted | 0 | 0 | 11,135 | 18,750 | 42,900 | |||
Norwood Financial Corp 2006 Stock Option Plan [Member] | Outside Directors [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 66,000 | |||||||
Options, Granted | 6,000 | |||||||
Shares available for awards | 0 | |||||||
Norwood Financial Corp 2014 Equity Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 375,000 | |||||||
Options and restricted stock, granted | 44,150 | 36,675 | 20,591 | 13,950 | ||||
Shares available for awards | 217,635 | |||||||
Norwood Financial Corp 2014 Equity Incentive Plan [Member] | Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, Granted | 24,000 | 10,616 | ||||||
Norwood Financial Corp 2014 Equity Incentive Plan [Member] | Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 63,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||||||
Norwood Financial Corp 2014 Equity Incentive Plan [Member] | Officer [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for awards | 185,510 | |||||||
Norwood Financial Corp 2014 Equity Incentive Plan [Member] | Officer [Member] | Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, Granted | 26,750 | |||||||
Norwood Financial Corp 2014 Equity Incentive Plan [Member] | Officer [Member] | Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted stock, granted | 9,000 | 9,000 | 6,375 | 9,750 | ||||
Shares available for awards | 21,075 | |||||||
Norwood Financial Corp 2014 Equity Incentive Plan [Member] | Outside Directors [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 60,000 | |||||||
Shares available for awards | 32,125 | |||||||
Norwood Financial Corp 2014 Equity Incentive Plan [Member] | Outside Directors [Member] | Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, Granted | 8,000 | |||||||
Norwood Financial Corp 2014 Equity Incentive Plan [Member] | Outside Directors [Member] | Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 12,000 | |||||||
Restricted stock, granted | 400 | 3,675 | 3,600 | 4,200 | ||||
Shares available for awards | 14,825 | |||||||
Amended Norwood Financial Corp 2014 Equity Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options and restricted stock, granted | 42,000 | |||||||
Amended Norwood Financial Corp 2014 Equity Incentive Plan [Member] | Officer [Member] | Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options, Granted | 26,500 | |||||||
Amended Norwood Financial Corp 2014 Equity Incentive Plan [Member] | Officer [Member] | Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 62,700 | |||||||
Restricted stock, granted | 7,500 | |||||||
Shares increased (decrased) | (300) | |||||||
Amended Norwood Financial Corp 2014 Equity Incentive Plan [Member] | Outside Directors [Member] | Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 32,300 | |||||||
Restricted stock, granted | 5,600 | |||||||
Shares increased (decrased) | 20,300 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Based Compensation [Abstract] | ||
Options, beginning of year | 212,725 | 225,669 |
Options, Granted | 28,900 | 34,750 |
Options, Exercised | (28,275) | (44,219) |
Options, Forfeited | (4,650) | (3,475) |
Options, end of year | 208,700 | 212,725 |
Options, Exercisable, end of period | 179,800 | 177,975 |
Weighted Average Exercise Price Per Share, Outstanding, beginning of period | $ 20.76 | $ 19.46 |
Weighted Average Exercise Price Per Share, Granted | 32.34 | 32.81 |
Weighted Average Exercise Price Per Share, Exercised | 18.39 | 23.53 |
Weighted Average Exercise Price Per Share, Forfeited | 27.08 | 21.71 |
Weighted Average Exercise Price Per Share, Outstanding, end of period | 22.54 | 20.76 |
Weighted Average Exercise Price Per Share, Exercisable, end of period | $ 20.97 | $ 18.41 |
Weighted Average Remaining Contractual Term, Outstanding | 5 years 10 months 24 days | |
Aggregate Intrinsic Value, Outstanding, beginning of period | $ 2,604,097 | |
Aggregate Intrinsic Value, Outstanding, end of period | 2,182,537 | $ 2,604,097 |
Aggregate Intrinsic Value, Exercisable at end of period | $ 2,163,463 | $ 2,597,494 |
Stock Based Compensation (Sched
Stock Based Compensation (Schedule of Fair Value Assumptions) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Based Compensation [Abstract] | ||
Dividend yield | 3.72% | 3.89% |
Expected life | 10 years | 10 years |
Expected volatility | 29.10% | 29.11% |
Risk-free interest rate | 2.68% | 2.41% |
Weighted average fair value of options granted | $ 7.18 | $ 6.83 |
Stock Based Compensation (Sch_2
Stock Based Compensation (Schedule of Outstanding Stock Options) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding | 208,700 | 212,725 | 225,669 |
Average Exercise Price | $ 22.54 | $ 20.76 | $ 19.46 |
Remaining Life, Years | 5 years 10 months 24 days | ||
Options Exercisable | 179,800 | 177,975 | |
Average Exercise Price | $ 20.97 | $ 18.41 | |
Average Exercise Price - $17.33 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding | 14,775 | ||
Average Exercise Price | $ 17.33 | ||
Remaining Life, Years | 1 year | ||
Options Exercisable | 14,775 | ||
Average Exercise Price | $ 17.33 | ||
Average Exercise Price - $16.83 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding | 14,025 | ||
Average Exercise Price | $ 16.83 | ||
Remaining Life, Years | 2 years | ||
Options Exercisable | 14,025 | ||
Average Exercise Price | $ 16.83 | ||
Average Exercise Price - $16.65 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding | 18,825 | ||
Average Exercise Price | $ 16.65 | ||
Remaining Life, Years | 3 years | ||
Options Exercisable | 18,825 | ||
Average Exercise Price | $ 16.65 | ||
Average Exercise Price - $18.03 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding | 26,400 | ||
Average Exercise Price | $ 18.03 | ||
Remaining Life, Years | 4 years | ||
Options Exercisable | 26,400 | ||
Average Exercise Price | $ 18.03 | ||
Average Exercise Price - $18.36 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding | 1,650 | ||
Average Exercise Price | $ 18.36 | ||
Remaining Life, Years | 4 years | ||
Options Exercisable | 1,650 | ||
Average Exercise Price | $ 18.36 | ||
Average Exercise Price - $19.30 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding | 3,000 | ||
Average Exercise Price | $ 19.30 | ||
Remaining Life, Years | 4 years 9 months 18 days | ||
Options Exercisable | 3,000 | ||
Average Exercise Price | $ 19.30 | ||
Average Exercise Price - $17.93 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding | 25,375 | ||
Average Exercise Price | $ 17.93 | ||
Remaining Life, Years | 5 years | ||
Options Exercisable | 25,375 | ||
Average Exercise Price | $ 17.93 | ||
Average Exercise Price - $19.39 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding | 12,000 | ||
Average Exercise Price | $ 19.39 | ||
Remaining Life, Years | 5 years 10 months 24 days | ||
Options Exercisable | 12,000 | ||
Average Exercise Price | $ 19.39 | ||
Average Exercise Price - $19.03 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding | 13,500 | ||
Average Exercise Price | $ 19.03 | ||
Remaining Life, Years | 6 years 10 months 24 days | ||
Options Exercisable | 13,500 | ||
Average Exercise Price | $ 19.03 | ||
Average Exercise Price - $22.37 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding | 18,500 | ||
Average Exercise Price | $ 22.37 | ||
Remaining Life, Years | 8 years | ||
Options Exercisable | 18,500 | ||
Average Exercise Price | $ 22.37 | ||
Average Exercise Price - $32.81 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding | 31,750 | ||
Average Exercise Price | $ 32.81 | ||
Remaining Life, Years | 9 years | ||
Options Exercisable | 31,750 | ||
Average Exercise Price | $ 32.81 | ||
Average Exercise Price - $32.34 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding | 28,900 | ||
Average Exercise Price | $ 32.34 | ||
Remaining Life, Years | 10 years |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of Restricted Stock Activity) (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock Non-vested, beginning balance | 30,415 | 28,035 |
Restricted stock, granted | 13,100 | 9,400 |
Restricted stock, vested | (8,900) | (7,020) |
Restricted stock, forfeited | 0 | |
Restricted stock Non-vested, ending balance | 34,615 | 30,415 |
Restricted stock Non-vested, weighted-average grant date fair value, beginning balance | $ 24.46 | $ 20.64 |
Restricted stock, granted, weighted-average grant date fair value | 32.34 | 32.81 |
Restricted stock, vested, weighted-average grant date fair value | 23 | 20.37 |
Restricted stock, forfeited, weighted-average grant date fair value | ||
Restricted stock Non-vested, weighted-average grant date fair value, ending balance | $ 27.82 | $ 24.46 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
EARNINGS PER SHARE | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 |
Share price | $ 33 | $ 33 |
Common Stock, Dividend Rate, Percentage | 50.00% |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Weighted Average Shares Outstanding Used in the Computations of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
EARNINGS PER SHARE | ||
Numerator, net income | $ 13,651 | $ 8,198 |
Weighted average shares outstanding | 6,263 | 6,238 |
Less: Weighted average unvested restricted shares | (31) | (28) |
Denominator: Basic earnings per share | 6,232 | 6,210 |
Weighted average shares outstanding, basic | 6,232 | 6,210 |
Add: Dilutive effect of stock options | 58 | 61 |
Denominator: Diluted earnings per share | 6,290 | 6,271 |
Basic earnings per common share | $ 2.19 | $ 1.32 |
Diluted earnings per common share | $ 2.17 | $ 1.31 |
Off-Balance Sheet Financial I_3
Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Loss Contingencies [Line Items] | ||
Financial instrument commitments | $ 121,421 | $ 113,117 |
Commitments to grant loans [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument commitments | 45,246 | 44,970 |
Unfunded commitments under lines of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument commitments | 71,906 | 62,228 |
Standby letters of credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial instrument commitments | $ 4,269 | $ 5,919 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | $ 1,319 | $ 1,247 |
Impaired Loans, Cumulative Charge-Offs | 428 | |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | $ 1,319 | $ 1,247 |
Number of impaired loans not requiring a valuation allowance | loan | 6 | 5 |
Impaired Loans, Cumulative Charge-Offs | $ 277 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 243,277 | $ 281,121 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | ||
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 243,277 | 281,121 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | ||
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,998 | |
US Treasury Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | ||
US Treasury Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,998 | |
US Treasury Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | ||
States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 97,613 | 120,478 |
States and Political Subdivisions [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | ||
States and Political Subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 97,613 | 120,478 |
States and Political Subdivisions [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | ||
Corporate Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 8,640 | 9,989 |
Corporate Obligations [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | ||
Corporate Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 8,640 | 9,989 |
Corporate Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | ||
Mortgage-backed Securities-Government Sponsored Entities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 137,024 | 148,656 |
Mortgage-backed Securities-Government Sponsored Entities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | ||
Mortgage-backed Securities-Government Sponsored Entities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 137,024 | 148,656 |
Mortgage-backed Securities-Government Sponsored Entities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Fair Value, Assets and Liabilities Measured on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 1,319 | $ 1,247 |
Impaired Loans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | ||
Impaired Loans [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | ||
Impaired Loans [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,319 | 1,247 |
Foreclosed Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,115 | 1,661 |
Foreclosed Real Estate Owned [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | ||
Foreclosed Real Estate Owned [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | ||
Foreclosed Real Estate Owned [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 1,115 | $ 1,661 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Additional Qualitative Information about Level 3 Assets) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 1,319,000 | $ 1,247,000 |
Fair Value Disclosure, Unobservable Input Range | Probability of default | |
Impaired Loans [Member] | Measurement Input, Default Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0 | 0 |
Impaired Loans [Member] | Appraisal of collateral [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 232,000 | $ 131,000 |
Fair Value Disclosure, Unobservable Input Range | Appraisal adjustments(2) | |
Impaired Loans [Member] | Appraisal of collateral [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 10 | |
Impaired Loans [Member] | Present value of future cash flows [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 1,087,000 | $ 1,116,000 |
Fair Value Disclosure, Unobservable Input Range | Loan discount rate | |
Impaired Loans [Member] | Minimum [Member] | Appraisal of collateral [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 10 | |
Impaired Loans [Member] | Minimum [Member] | Present value of future cash flows [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 4 | 4 |
Impaired Loans [Member] | Maximum [Member] | Appraisal of collateral [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 81.54 | |
Impaired Loans [Member] | Maximum [Member] | Present value of future cash flows [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 6 | 5.25 |
Impaired Loans [Member] | Weighted Average [Member] | Appraisal of collateral [Member] | Measurement Input, Appraised Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 56.06 | 10 |
Impaired Loans [Member] | Weighted Average [Member] | Present value of future cash flows [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 5.80 | 5.11 |
Foreclosed Real Estate Owned [Member] | Appraisal of collateral [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 1,115,000 | $ 1,661,000 |
Fair Value Disclosure, Unobservable Input Range | Liquidation Expenses(2) | |
Foreclosed Real Estate Owned [Member] | Minimum [Member] | Appraisal of collateral [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 7 | 0 |
Foreclosed Real Estate Owned [Member] | Maximum [Member] | Appraisal of collateral [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 85.71 | 42.60 |
Foreclosed Real Estate Owned [Member] | Weighted Average [Member] | Appraisal of collateral [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 7.80 | 14.68 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets: Cash and cash equivalents, Fair Value Disclosure | $ 18,348 | $ 16,697 | |
Financial assets: Loans receivable, net, Fair Value Disclosure | 840,134 | 756,092 | |
Financial assets: Mortgage servicing rights, Fair Value Disclosure | 220 | 223 | |
Financial assets: Regulatory stock, Fair Value Disclosure | 3,926 | 3,505 | |
Financial assets: Bank owned life insurance, Fair Value Disclosure | 37,932 | 37,060 | |
Financial assets: Accrued interest receivable, Fair Value Disclosure | 3,776 | 3,716 | |
Financial liabilities: Deposits, Fair Value Disclosure | 945,773 | 929,709 | |
Financial liabilities: Short-term borrowings, Fair Value Disclosure | 53,046 | 42,530 | |
Financial liabilities: Other borrowings, Fair Value Disclosure | 52,043 | 35,514 | |
Financial liabilities: Accrued interest payable, Fair Value Disclosure | 1,806 | 1,434 | |
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit, Fair Value Disclosure | |||
Financial assets: Cash and cash equivalents | 18,348 | 16,697 | $ 17,174 |
Financial assets: Loans receivable, net | 841,730 | 756,458 | |
Financial assets: Mortgage servicing rights | 178 | 200 | |
Financial assets: Regulatory stock | 3,926 | 3,505 | |
Financial assets: Bank owned life insurance | 37,932 | 37,060 | |
Financial assets: Accrued interest receivable | 3,776 | 3,716 | |
Financial liabilities: Deposits | 946,780 | 929,384 | |
Financial liabilities: Short-term borrowings | 53,046 | 42,530 | |
Financial liabilities: Other borrowings | 52,284 | 35,945 | |
Financial liabilities: Accrued interest payable | 1,806 | 1,434 | |
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets: Cash and cash equivalents, Fair Value Disclosure | 18,348 | 16,697 | |
Financial assets: Loans receivable, net, Fair Value Disclosure | |||
Financial assets: Mortgage servicing rights, Fair Value Disclosure | |||
Financial assets: Regulatory stock, Fair Value Disclosure | 3,926 | 3,505 | |
Financial assets: Bank owned life insurance, Fair Value Disclosure | 37,932 | 37,060 | |
Financial assets: Accrued interest receivable, Fair Value Disclosure | 3,776 | 3,716 | |
Financial liabilities: Deposits, Fair Value Disclosure | 601,604 | 609,090 | |
Financial liabilities: Short-term borrowings, Fair Value Disclosure | 53,046 | 42,530 | |
Financial liabilities: Other borrowings, Fair Value Disclosure | |||
Financial liabilities: Accrued interest payable, Fair Value Disclosure | 1,806 | 1,434 | |
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit, Fair Value Disclosure | |||
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets: Cash and cash equivalents, Fair Value Disclosure | |||
Financial assets: Loans receivable, net, Fair Value Disclosure | |||
Financial assets: Mortgage servicing rights, Fair Value Disclosure | |||
Financial assets: Regulatory stock, Fair Value Disclosure | |||
Financial assets: Bank owned life insurance, Fair Value Disclosure | |||
Financial assets: Accrued interest receivable, Fair Value Disclosure | |||
Financial liabilities: Deposits, Fair Value Disclosure | |||
Financial liabilities: Short-term borrowings, Fair Value Disclosure | |||
Financial liabilities: Other borrowings, Fair Value Disclosure | |||
Financial liabilities: Accrued interest payable, Fair Value Disclosure | |||
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit, Fair Value Disclosure | |||
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets: Cash and cash equivalents, Fair Value Disclosure | |||
Financial assets: Loans receivable, net, Fair Value Disclosure | 840,134 | 756,092 | |
Financial assets: Mortgage servicing rights, Fair Value Disclosure | 220 | 223 | |
Financial assets: Regulatory stock, Fair Value Disclosure | |||
Financial assets: Bank owned life insurance, Fair Value Disclosure | |||
Financial assets: Accrued interest receivable, Fair Value Disclosure | |||
Financial liabilities: Deposits, Fair Value Disclosure | 344,169 | 320,619 | |
Financial liabilities: Short-term borrowings, Fair Value Disclosure | |||
Financial liabilities: Other borrowings, Fair Value Disclosure | 52,043 | 35,514 | |
Financial liabilities: Accrued interest payable, Fair Value Disclosure | |||
Off-balance sheet financial instruments: Commitments to extend credit and outstanding letters of credit, Fair Value Disclosure |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Summary Of Changes In Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ (2,667) | |
Other comprehensive (loss) income | (2,353) | $ 1,886 |
Ending balance | (5,020) | (2,667) |
Unrealized gains (losses) on available for sale securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (3,041) | (4,437) |
Other comprehensive income (loss) before reclassification | (2,349) | 2,127 |
Amount reclassified from accumulated other comprehensive loss | (168) | (230) |
Other comprehensive (loss) income | (2,517) | 1,897 |
Reclassification of certain income tax effects from other comprehensive loss | (501) | |
Ending balance | (5,558) | (3,041) |
Unrealized gain (loss) on pension liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 374 | 318 |
Other comprehensive income (loss) before reclassification | 164 | (11) |
Other comprehensive (loss) income | 164 | (11) |
Reclassification of certain income tax effects from other comprehensive loss | 67 | |
Ending balance | 538 | 374 |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (2,667) | (4,119) |
Other comprehensive income (loss) before reclassification | (2,185) | 2,116 |
Amount reclassified from accumulated other comprehensive loss | (168) | (230) |
Other comprehensive (loss) income | (2,353) | 1,886 |
Reclassification of certain income tax effects from other comprehensive loss | (434) | |
Ending balance | $ (5,020) | $ (2,667) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Significant Amounts Reclassified Out Of Each Component Of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized gains on sales of securities | $ 213 | $ 348 |
Income tax expense | (2,553) | (6,551) |
Net income | 13,651 | 8,198 |
Amount Reclassified From Accumulated Other Comprehensive Income (Loss) [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax expense | (45) | (118) |
Net income | 168 | 230 |
Amount Reclassified From Accumulated Other Comprehensive Income (Loss) [Member] | Unrealized gains (losses) on available for sale securities [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized gains on sales of securities | $ 213 | $ 348 |
Norwood Financial Corp (Paren_3
Norwood Financial Corp (Parent Company Only) Financial Information (Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Condensed Financial Statements, Captions [Line Items] | |||
Cash on deposit in bank subsidiary | $ 18,039 | $ 16,212 | |
Securities available for sale | 243,277 | 281,121 | |
Other assets | 8,942 | 7,041 | |
Total Assets | 1,184,559 | 1,132,916 | |
Liabilities | 1,062,274 | 1,017,177 | |
Stockholders' equity | 122,285 | 115,739 | $ 111,079 |
Total Liabilities and Stockholders' Equity | 1,184,559 | 1,132,916 | |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash on deposit in bank subsidiary | 2,509 | 4,782 | |
Investment in bank subsidiary | 120,511 | 110,218 | |
Other assets | 1,739 | 2,858 | |
Total Assets | 124,759 | 117,858 | |
Liabilities | 2,474 | 2,119 | |
Stockholders' equity | 122,285 | 115,739 | |
Total Liabilities and Stockholders' Equity | $ 124,759 | $ 117,858 |
Norwood Financial Corp (Paren_4
Norwood Financial Corp (Parent Company Only) Financial Information (Statements of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net realized gain (loss) on sales of securities | $ 213 | $ 348 |
Income before Income Taxes | 16,204 | 14,749 |
Income tax expense | 2,553 | 6,551 |
Net income | 13,651 | 8,198 |
COMPREHENSIVE INCOME | 11,298 | 10,084 |
Parent Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Dividends from bank subsidiary | 5,643 | 5,412 |
Net realized gain (loss) on sales of securities | 130 | |
Other interest income | 8 | |
Revenues | 5,643 | 5,550 |
Expenses | 618 | 511 |
Income before Income Taxes | 5,025 | 5,039 |
Income tax expense | (217) | (127) |
Income before equity in undistributed earnings | 5,242 | 5,166 |
Equity in undistributed earnings of subsidiary | 8,409 | 3,032 |
Net income | 13,651 | 8,198 |
COMPREHENSIVE INCOME | $ 11,298 | $ 10,084 |
Norwood Financial Corp (Paren_5
Norwood Financial Corp (Parent Company Only) Financial Information (Statements of Cash Flows) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net income | $ 13,651,000 | $ 8,198,000 |
Net realized gain on sales of securities | (213,000) | (348,000) |
Other, net | (275,000) | 193,000 |
Net Cash Provided by Operating Activities | 17,298,000 | 16,051,000 |
Proceeds from sale of securities | 17,745,000 | 15,612,000 |
Net Cash Used for Investing Activities | (54,838,000) | (28,593,000) |
Stock options exercised | 520,000 | 1,040,000 |
Sale of treasury stock for ESOP | 123,000 | 127,000 |
Acquisition of treasury stock | (194,000) | (1,587,000) |
Cash dividends paid | (5,509,000) | (5,386,000) |
Net Cash Provided by Financing Activities | 39,191,000 | 12,065,000 |
Net Increase (Decrease) in Cash and Cash Equivalents | 1,651,000 | (477,000) |
CASH AND CASH EQUIVALENTS, BEGINNING | 16,697,000 | 17,174,000 |
CASH AND CASH EQUIVALENTS, END | 18,348,000 | 16,697,000 |
Parent Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | 13,651,000 | 8,198,000 |
Undistributed earnings of bank subsidiary | (8,409,000) | (3,032,000) |
Net realized gain on sales of securities | (130,000) | |
Decrease in deferred ncome tax | 1,158,000 | 1,736,000 |
Other, net | 387,000 | 389,000 |
Net Cash Provided by Operating Activities | 6,787,000 | 7,161,000 |
Investment in bank subsidiary | (4,000,000) | |
Proceeds from sale of securities | 422,000 | |
Net Cash Used for Investing Activities | (4,000,000) | 422,000 |
Stock options exercised | 520,000 | 1,040,000 |
Sale of treasury stock for ESOP | 123,000 | 127,000 |
Acquisition of treasury stock | (194,000) | (1,587,000) |
Cash dividends paid | (5,509,000) | (5,386,000) |
Net Cash Provided by Financing Activities | (5,060,000) | (5,806,000) |
Net Increase (Decrease) in Cash and Cash Equivalents | (2,273,000) | 1,777,000 |
CASH AND CASH EQUIVALENTS, BEGINNING | 4,782,000 | 3,005,000 |
CASH AND CASH EQUIVALENTS, END | $ 2,509,000 | $ 4,782,000 |